STEVE Cotterill's contract talks will take on an extra significance next week after the Burnley manager finally told Leicester: I'm staying at Burnley.

Cotterill has finally put a stop to a week of intense speculation by committing himself to the Clarets.

However, crucially, he has still not agreed to sign a new contract to take him beyond the end of his present three-year-deal, which has 18-months to run.

Talks with chairman Barry Kilby are scheduled to resume next week in the wake of today's Championship clash with Plymouth Argyle at Turf Moor.

And unless that issue can be resolved quickly, it seems only a matter of time before another big club in crisis puts Cotterill high on their hit list.

I understand that right up until yesterday morning, Cotterill remained City's number one target to replace Craig Levein at the Walkers Stadium.

But City chiefs were finally forced to look elsewhere after Cotterill turned down the opportunity in a detailed statement.

Cotterill insisted: "I'm staying at Burnley Football Club.

"I would like to thank Leicester City for their approach for me. They are good people at a good club and I enjoyed the time I spent there and would like to wish them all the best for the rest of the season.

"However, a lot has been built here in the last 18 months and we are continuing to build for the future at Burnley Football Club.

"I have a great relationship with the Chairman and supporters of our football club and I would like to thank all of those people who have sent me cards and letters this week, I have been overwhelmed."

Cotterill has overseen a total transformation on and off the pitch since taking over as manager from Stan Ternent in the summer of 2004.

Only Brian Jensen and Graham Branch remain from the playing staff he inherited, while almost £6million has flooded into the club coffers through the enforced sales of Richard Chaplow, Robbie Blake, and, earlier this month Ade Akinbiyi for a club record £1.75m.

Over £1m of that cash will now be made available to the manager for rebuilding during the summer.

And Cotterill will surely be hoping that his decision to stay can influence the Burnley board to drum up more transfer funds to help keep Burnley competitive.