The Mercury site is reporting that City's on/off striker Arnar Gunnlaugsson is set to sign a two-year extension to his Leicester City contract sometime this week.

Arnar was signed by Martin O'Neill three season's ago and although he has probably spent more time on the bench, in hospital or at Stoke than he has on the pitch for City, Peter Taylor still insists that he has plans for him and is backing up that claim with a new contract.

After he played last night for City's drawing reserve-team he told reporters, “I am hoping to sign a new contract this week.

“I don’t think there will be any problems, everything is done and dusted.

“I spoke to my agent last week and when I have the chance to talk to the manager then I think we are going to finalise it.

“The deal is for another two years and I am happy with that and I hope for more starting places next season.

“I need to get a proper pre-season under my belt after missing the last three build-ups.’’

The news is bound to please fans who have supported Arnie from the first day he arrived at City.