The 29-year-old is currently considering the terms of the proposal, although he is also believed to have interest from elsewhere.
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Manager Martin O’Neill confirmed the offer while speaking to reporters during Celtic’s pre-season training camp in Portugal and admitted the club is awaiting the player’s decision.
“There’s an offer there to him (Iheanacho) at this minute. So we’ll see how that develops,” he told the media.
Iheanacho joined the Hoops last summer on a one-year deal that included an option for an additional season, but that clause expired in June, forcing both parties back into negotiations.