Richard Dunne is on the verge of agreeing a new contract with Manchester City.

The defender had looked destined to leave Eastlands earlier in the summer, with Premier League rivals Portsmouth seemingly his most likely destination.

However, with Mark Hughes having recently been installed as Sven Goran Eriksson's successor in the vacant managerial hot seat at City, the Republic of Ireland international appears to have had a change of heart.

His decision to discuss a new deal has come as a welcome relief to Hughes, who also admitted that England U21 keeper Joe Hart is currently in talks regarding his long-term future at the club.

"The situation with Richard is that it's as good as done, which I'm delighted with," said Hughes.

"He's a really important player for us. It was one of my priorities when I took the job that I made sure that Richard was one of the players we needed to keep.

"It's the same with Joe, it's something we want resolved quickly. Negotiations are still ongoing but I think there's a will on both sides to get things done."