Leicester City are set to open contract talks with Gareth McAuley after rejecting a second bid from Ipswich Town for his services.
Ipswich lodged a bid for the 28-year-old earlier this month and have now seen a follow-up offer also shunned by The Foxes.
Chairman Milan Mandaric confirmed Leicester's decision to turn down Ipswich's fresh offer along with their intention of giving the Northern Ireland international a new contract.
The former Lincoln City defender currently has 18 months left on the deal he signed when he joined on a free transfer in the summer of 2006.
"We have finally rejected the offer and Gareth McAuley stays," Mandaric told the Leicester Mercury.
"He is a quality player, we are ambitious to get into the Premier League and we need players like him to do that.
"The lad wants to stay here and I have given my manager the green light to discuss a new contract with him.
"We have had some good results recently, the team is doing well and we want that to continue so that we can climb the table. So we need to keep our best players with us."