Steve Cotterill believes it would be a 'fantastic boost' if David Nugent signs a new contract and is confident the striker wants to stay at Portsmouth.
Nugent's current deal expires at the end of the season and he has been linked with a January switch to the Premier League with Blackpool.
However, Pompey have started talks over a new deal for Nugent, who moved to Fratton Park in a £6million deal from Preston in 2007.
Cotterill believes the 25-year-old is happy on the South Coast and is optimistic that the England cap will pledge his future to the Championship club.
"It would be a fantastic boost for him to sign a new contract," said Cotterill. "He's not only a top player but a top lad and a big part of the dressing room.
"I don't think we were ever close to losing him. I think there was a lot more made of it then there was any real substance. I don't think so.
"I think talks could go on over the next month. David Lampitt is trying to tee up a conversation with his agent.
"It's not something I deal with. I deal with whether I want them or not - and I want him.
"There will be interest in him. He's a good, young player and an infectious character.
"I know where David's head is. He's happy at the moment. He's not looking to leave and that's a bonus for us."