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This comes a day after Michael Duff signed a new two year deal which added to those contracts previously signed by Clarke Carlisle and Graham Alexander. It is also thought that goalkeeper Brian Jensen has agreed to stay at Turf Moor, although there has been no official word.
Thompson started only one Premier League game last season but played more of a part in the second half of the season than he'd done in the first half. He scored four times with three of those coming in the last four games.
Manager Laws said: "He did really well last season and I'm delighted that he was agreed to stay. He's a payer who is well liked at the football club who I think will make a mark again next season.
"I am delighted to have that experience in the squad and again he is a player who knows what's required to get out of the Championship."
This really is good news for the club. I've always rated Thommo one of Owen Coyle's best signings and the squad for next season is certainly very much strengthened with news of him staying.
That leaves Robbie Blake and there are strong suggestions there could be some positive news on that front soon while we might not have too long to wait to get news of the first summer signings.