Leicester City expects Riyad Mahrez to stay at the club following a meeting between director of football Jon Rudkin and his representatives on Wednesday.
The Premier League champions do not wish to sell the Algerian in this window despite interest from rival clubs.
Despite reports in France on Wednesday, it is understood Arsenal have not made a £35m bid for the 25-year-old.
Sportsmail understands the title-winning star is not desperate to leave the King Power outfit this summer.
Leicester are holding out for a large fee before considering a sale, which could mean Mahrez does not sign the new contract currently on the table.
Mahrez shone for the unlikely Premier League champions last season, contributing 17 goals and 11 assists on his way to the PFA Player of the Year award.
His form has seen Arsene Wenger show strong interest in the Algerian but Claudio Ranieri, speaking last week, insisted Mahrez ‘is staying with us’.
‘It is not a distraction for me. I am used to speaking about these things,’ the Italian said at his press conference last Friday.
‘It is important that my players believe in the new moment. It is normal others wants Riyad but we must focus on the job.
‘I speak with him a lot and I hope I can help him. The chairman told me at the beginning, when we spoke, that we want to keep everybody.
‘N’Golo Kante had a clause and wanted to go, but the others stay with us.
‘He [Mahrez] has a contract – another three years. Why does he have to sign? He has money and everything.