Sven Goran Eriksson insists Richard Dunne's new deal at Manchester City remains 'in the pipeline'.
There has been speculation that the City defender could leave Eastlands in the summer after contract negotiations stalled in the January transfer window.
However, City boss Eriksson is confident contract talks will resume shortly and that Dunne will agree new terms.
City have recently secured England international Micah Richards to a long-term deal and midfielder Dietmar Hamann agreed an extended one-year contract on Wednesday.
Dunne, though, is rumoured to be keen to agree terms which place him on a par with City's top earners.
But Eriksson is certain that the two parties will reach an agreement and that Dunne will sign a new deal.
"It (a new contract) is still in the pipeline and I am sure he will sign a new contract," Eriksson told the Manchester Evening News.