Niko Kranjcar is set to sign a new contract with Portsmouth.

Croatia midfielder Kranjcar, 24, is set to agree a deal keeping him at Fratton Park until the summer of 2013.

Arsenal boss Arsene Wenger has been a long-term admirer of Kranjcar and was planning to make the big-money bid in the summer.

But Portsmouth manager Tony Adams said: "We want to keep Niko for the long-term because we know he can get better.

"He knocked in a few goals last season but I expect more from my great players and Niko is a great player.

"He is a great footballer and needs to keep developing."