Swansea City say defender Neil Taylor is considering signing a new four-year deal to remain with the Premier League newcomers.
It emerged this week the 22-year-old Wales left-back had asked the Premier League to arbitrate over his possible move to Newcastle United.
But manager Brendan Rodgers says Taylor may now remain a Swansea player.
"There's absolutely no question, he's very, very close to a new deal," Rodgers told BBC Sport Wales.
"There's been a lot of stuff written about Neil and I felt really, really sorry for him.
"Of course the interest from a club of the status of Newcastle United... and of course the wages also... I can understand maybe a young player having his head turned towards that.
"None of it has come from him and we've had lots of conversations over the 'phone, because we were in various parts of the world, over the course of the summer.
"He always made it clear that this is where he wanted to be and eventually him and I had a good face-to-face conversation last week.
"I said to him I think, for a young player, Swansea is a fantastic place to come for your development."
Newcastle are thought to have offered £1m for Taylor, which they believe triggered a clause allowing them to approach and sign the three-times capped Wales player.
Swansea have always disputed that and insist that the clause in Taylor's contract only allows talks to take place, while also rejecting the Magpies' bid.
Taylor was a key part of the Swansea side which won promotion to the Premier League in May, making 32 appearances for Brendan Rodgers' side last season - although he missed the 4-2 play-off final win over Reading at Wembley after being sent off in the semi-final first leg against Nottingham Forest.
Swansea signed Taylor as a free agent in June 2010 after his contract expired with Wrexham, although the Blue Square Bet Premier side did get £150,000 compensation as the player is under 24 years old.
Wrexham are also due 10% of any future transfer fee profit and would have been watching with interest the possibility that Taylor might have been sold.