Youri Tielemans could yet sign a new deal with Leicester City.

Sky Sports says Leicester are now are more likely to agree a one-year contract extension with the midfielder, after Arsenal have pulled back from talks for the Belgian.

The Gunners have agreed a deal to sign Porto midfielder Fabio Vieira for £34m, meaning Tielemans could be set to remain at the King Power Stadium, despite being linked with a move away for almost a year.

The mood between the Foxes and Tielemans is 'still very cordial', reports Sky Sports' Rob Dorsett.

Agreeing to a short-term extension would allow Leicester to postpone an exit for their Belgian star man, whose current deal runs to next summer.