Elliott signs new Foxes contract

Matt Elliott has signed a new deal to stay with Leicester

Leicester City skipper Matt Elliott has signed a new contract - ending speculation he was about to join Martin O'Neill at Celtic.

The new contract will keep Elliott with the Foxes until 2004.

Elliott, whose two goals inspired Leicester to win the Worthington Cup in March, has been constantly linked with a switch to Parkhead since former Leicester boss O'Neill took charge last week.

But the Scotland defender, who had three years of his current deal to run, put pen to paper on Thursday on a new contract with a 12-month extension.

By taking this decision I think it shows where I stand and I want to try and help the club to further success

Matt Elliott

Elliott said: "By taking this decision I think it shows where I stand and I want to try and help the club to further success.

"People were saying that it would be all doom and gloom when Emile Heskey left and he was obviously a big part of the team.

"But we have shown we have a lot of other quality in the squad.

"We finished in the top eight of the Premiership and we are now looking forward to another crack at the Uefa Cup.

"It has already been stated that the manager, whoever he is, will have the funds available from the Heskey transfer (£11million) to spend on new players which will add more depth to the squad."

It is the second major boost for City after key midfielder Muzzy Izzet insisted that he wants to tie up his long-term future at the club.

Serious option

Izzet, who has 12 months left of his current contract, will hold further talks when he returns from Euro 2000 duty with Turkey.

However Foxes midfielder Neil Lennon could be joining up with O'Neill.

The £6million-rated Northern Ireland international is ready to join him at Celtic Park given the chance.

Lennon told The Guardian: "Were Celtic to make a bid for me and Leicester allowed me to talk to them it would become a very serious option.

"Myself and Martin were as close as it ever gets between a manager and a player and it's fair to say I was desperately disappointed when he left."