Tottenham manager Andre Villas-Boas has revealed that the club are in talks with Gareth Bale's agent over a new contract.
The news comes amid growing interest from Real Madrid, who have made the Wales international their prime target this summer.
This week, reports in Spain emerged that suggested Bale was on the verge of a move to the Bernabeu, with Marca, the mouthpiece of Real, going as far as to say he has already agreed a six-year deal.
However, The Independent understands that Bale is keen to remain in England with his family - at least for another year.
That could see the 24-year-old agree new terms with his current club.
"There was contact between the club and his agent last year and there is ongoing contact between the club and his agent," said Villas-Boas this morning.
"We renewed his contract at the beginning of last season, if you remember, and it's something that is being dealt with by the chairman and the agent.
"Talks are ongoing but that doesn't mean there is an agreement. At the moment we're confident that the player is under contract at Tottenham, as was done last year.
"It's something that we're speaking about, but there aren't any developments."
With Manchester United continuing to be frustrated in their attempts to sign a midfielder, it's thought they could make a club record bid to snatch Bale away from White Hart Lane.
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