STEVE Cotterill and Barry Kilby were today meeting for a second round of contract talks after the Burnley manager insisted he was happy at Turf Moor.

Cotterill emerged from a two hour meeting with his chairman at a Brighton hotel yesterday to dismiss talks of a rift and insist he was "honoured" at Leicester City's request to speak to him about the vacant manager's job at The Walkers Stadium.

The Clarets chief said: "My chairman has rejected the approach from Leicester, so we will just get on with it.

"I am big enough and man enough and I'm enjoying myself at Burnley. I am due to have another chat with the chairman today and we'll see where that takes us and what develops.

"I don't know what happens in the future, but I am professional enough to get on with my job. I have loved every minute I've had at Burnley and I don't see any reason not to enjoy more in the future.

"I don't know what is around the corner and what tomorrow brings, but the Burnley fans need to know that I am happy working at their club and that hasn't changed."

Cotterill, who has less than 18 months remaining on his present three-year deal, added: "I am very ambitious, but sometimes the time has to be right.

"I'm very privileged and honoured that Leicester have asked to speak to me and I thank them for that, but at the end of the day I'm manager of Burnley and I don't envisage that changing tomorrow or Saturday and we'll wait and see what develops now.

"The chairman here has made it clear what he wants and it's not all about me and a new contract. That might well come out of it, but there are a few other things that we need to talk about.

"It has been reported that I've had a rift with him and nothing could be further from the truth. I have all the time in the world for him and we talked about a four-and-a-half year contract a while ago, but we've also chatted about the future of the club and where it goes.

"The chairman was very honest with the stage Burnley Football Club are at. We may find we unearth another nugget and have to sell him in 12 months time, but that's where we are at the minute."

Kilby added: "Steve and I had a meeting yesterday about the future the future of Burnley Football Club.

"I am discussing something here that will affect this club in three or four years time, not just tomorrow. We obviously talked about Leicester's approach and Steve is an ambitious man who wants to do the best for himself.

"But he is under contract to us and I would certainly like to strike a deal where we have a clear path in the future.

"There has been a frank exchange of views so far, but neither of us wants this to drag on, so we will meet again today."