Neil Lennon has agreed a new one-year contract to remain at Celtic next season. The midfielder will put pen to paper once a few minor details have been ironed out.

His contract expired this summer after he captained Celtic to the Bank of Scotland Premier League title last season.

Fans feared Lennon, who will be 35 this weekend, was set to walk away from the Scottish champions after Crystal Palace confirmed their interest in the former Northern Ireland international earlier in the week.

Reports suggested they were willing to offer him a longer deal and a coaching role in a bid to lure him to Selhurst Park. But Hoops boss Gordon Strachan insists he was always confident Lennon would remain a Celtic player next season.

Speaking of the veteran midfielder's decision to pledge his future to the Parkhead club, Strachan said: "It's smashing, it's fantastic. But I didn't see what all the panic was about. I said the same thing when I heard about Crystal Palace's interest."

Hibernian striker Derek Riordan also signed a three-year deal with Celtic today and Strachan added: "It has been a great day for us."

However, a question mark still remains over the future of Stilian Petrov. The Bulgarian midfielder's transfer request was rejected by Celtic towards the end of last season and he was expected to report for pre-season training today.

His efforts to leave will have alerted other clubs but Strachan insists Petrov is going nowhere.

"There's always interest in good players but he's still here," he said.