This comes as the player was heavily linked with a move to Leeds United and Southampton towards the back end of the transfer window.

Both Championship sides were extremely busy towards the end of the summer transfer window as their respective managers looked to fine-tune their squads.

There were a host of names linked to the clubs as the deadline got ever closer, but a move for O’Riley failed to materialise for either club.

Therefore, it seems Celtic are keen to avoid a repeat in the January transfer window and are now readying a fresh contract with improved terms.

How interested were Leeds United and Southampton in Matt O’Riley?

It was claimed by Sky Sports News, a few days before the transfer window shut, that both clubs were interested in a deal for the Celtic player.

Leeds wanted to improve their midfield before the close of play, while Southampton had identified it as an area to improve.

O’Riley wasn’t unknown to Southampton’s Russell Martin, as the pair worked together at MK Dons a few years back.

Southampton never made an offer for the player, but with hours to go, Leeds made a £10 million offer for the 22-year-old that was rejected by Celtic.

The Scottish Champions deemed the player not for sale, and they stood by that stance as he remained their player beyond the close of the window.

Celtic to offer Matt O’Riley a new contract

So now he’s remained their player, Celtic are trying to do what they can to keep him at the club as long as possible.

The Denmark international has three years left on his current deal, but Celtic want to show how important they rate him and are expected to offer him improved terms with an extension on his current deal.

Sky Sports’ Anthony Joseph tweeted: “Celtic are expected to offer midfielder Matt O’Riley improved terms & an extension on his contract. The 22yo was the subject of a £10m bid from Leeds United. Celtic rejected it & now hope to tie him up on a new deal during this international break.”

O’Riley has played in all four league games for Celtic this season, and he was part of the side that beat rivals Rangers on Sunday, with the midfielder picking up the assist in the only goal of the game.

Will Matt O’Riley’s signing of a new contract be a blow to Leeds and Southampton?

If Leeds and Southampton were interested in the player in the summer transfer window, there was likely going to be interest that carried on to January.

So, if O’Riley signs a new and improved contract at Celtic, then this will be a bitter blow for both clubs, as it makes their task of luring him to the Championship difficult if not impossible.

Celtic can offer the player European football until Christmas at the very least, so there is a big incentive for the player to stay, and he’s considered just as important in Brendan Rodgers’ team as he was last season.

So this will be bad news for Leeds and Southampton, but they are likely going to turn their attention to alternative targets now.