Kasper Schmeichel is set to commit his immediate future to Leicester City today, the Mercury understands.
The Denmark international is expected to finalise the details of his new City contract.
It will end any concerns among City fans that the highly-rated keeper is set to leave the club.
Schmeichel's existing contract was due to run out at the end of the month, allowing him to leave City on a free contract.
The 27-year-old admitted he was the subject of several "interesting" offers from various other clubs.
However, he has chosen to stay with City, reportedly on a four-year contract, ahead of their return to the Premier League.
City boss Nigel Pearson has previously stated how keen he was on keeping Schmeichel, who has been in superb form since joining the club three years ago from Leeds. Schmeichel has twice been named in the Championship team of the year and was voted the club's player of the year and players' player of the year in 2012.
Last season, he kept 17 clean sheets as City stormed to the Championship title.
One of the key factors in Schmeichel's decision has been the prospect of regular first-team football in the Premier League, especially now he has broken into the Denmark side.
But City's new signing Ben Hamer has said he plans to provide Schmeichel with competition for that starting spot.
"I know it is going to be a difficult tussle with Kasper Schmeichel, but at least I've got a chance in that situation," Hamer told the South London Press.
"He was the best keeper in the Championship and I've been made aware he is staying – I see that as a challenge.
"In this game, you have got to back yourself. I've always done that.
"Even though he's a fans' favourite and in all likelihood will start, it is a case of biding my time and working hard – pushing on in training.
"When a chance comes, I've got to take it."
City remain in contract talks with representatives of top-scorer David Nugent, pictured, despite reports talks had broken down.
