Sven-Goran Eriksson is confident Richard Dunne will sign a new deal at Manchester City despite being linked with a summer move.

Talks over the contract extension stalled in January, and both parties are set to get back around the table shortly in an attempt to reach an agreement.

Club captain Dunne has been at City for eight years and has been voted their Player of the Year three times.

But it is reported he wants parity with defensive partner Micah Richards, who signed a new five-and-a-half-year contract at Eastlands just last week.

If Dunne does not strike a deal, he could take advantage of the FIFA ruling that allows players over the age of 28 that have spent two years at the club to buy out the remaining 12 months of their contract.

But despite reported interest from Celtic and Newcastle in the defender, Eriksson said: "It is in the pipeline and I am sure he will sign a new contract."