Leicester City are finally set to offer Jamie Vardy a new contract in an effort to kill off interest from Chelsea and Manchester City.
Vardy is in line for improved terms after an excellent second season in the Premier League, with negotiations expected to start in the next few weeks.
The England international has been a revelation in Leicester's rise from relegation strugglers to title contenders, breaking Ruud Van Nistelrooy's record last month by scoring in 11 consecutive league games.
Chelsea have identified the 28-year-old as a target as they look to boost their attacking options, while City remain interested, despite club officials attempting to distance themselves from a move for the former Fleetwood Town forward.
Vardy earns £40,000 a week at the King Power Stadium after signing a new contract in August 2014, which has two and a half years to run, but his reputation has grown significantly since then. And Leicester this week made the first move to reward Vardy with a new deal after he played a major part in the club's remarkable start to the season.
Leicester's Thai owners have operated a strict wage structure since completing their takeover in October 2010 but recognise Vardy's meteoric rise has to be rewarded.
Algeria international Riyad Mahrez could also be poised for a new deal after emerging as one of the most highly rated playmakers in Europe.
Chelsea's need for firepower has intensified with the news that Radamel Falcao has suffered another significant injury setback that could lumber the champions with the striker and his £140,000-a-week wages for the rest of the season.
Falcao, who is on loan from Monaco, has been out with a thigh injury since October 31 and suffered a recurrence of the problem in a training game.
Interim manager Guus Hiddink had hoped to start building Falcao up to match fitness, but the Colombian is not expected to start training again for another 10 days. (© Daily Telegraph, London)