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Chairman Barry Kilby has said: "Owen is contracted to Burnley Football Club for another two years and we are deep into negotiations about an extension to that contract. Obviously negotiations have been suspended for a while during the play offs, but we are talking about another two years on top of his existing deal and we are very close.
"There are still some things to iron out but they are minor things and I fully expect it to be signed in the very near future."
Speaking about this week's Celtic link he added: "The Glasgow press have been stoking this up and it is very unwelcome. Both of us have been a little annoyed with all this unwelcome speculation because it has been a distraction we could do without.
"It has cost us hours and hours of valuable time and it has brought home how everything goes to warp factor 10 in the Premier League. Media speculation is going to be more intense, but it hasn't spoilt the party.
"All along we haven't had any communication from Celtic or anyone else, so as far as I am concerned Owen is our manager and happy where he is."