By Dominic Toner

Swansea midfielder Gylfi Sigurdsson is set sign a new deal at the club, according to a report.

The Telegraph claimed earlier this month that Everton were lining up a £25million bid for the Icelandic star.

The Sun report that the Toffees will miss out on the 26-year-old however, as he is set to snub an Everton approach and prolong his contract at the Liberty Stadium.

Sigurdsson started every game for the Iceland team which upset the odds to reach the quarter-finals of Euro 2016 in their first major tournament.

The attacking midfielder grabbed 11 goals in the Premier League last season, with nine of those coming since the turn of the year.

Everton recently appointed former Leicester assistant manager Steve Walsh as the Merseysiders’ new Director of Football and he may have played an immediate role in their pursuit of Sigurdsson. His former employers were previously linked with a move for the international star.

Ronald Koeman is keen on improving his Everton squad and has been linked with Belgian midfielder Axel Witsel in this window.

Gianluca Di Marzio’s website has reported that Zenit Saint Petersburg midfielder Witsel wants to leave the Russian side this summer, and this was confirmed by the club’s manager Mircea Lucescu.

Koeman will be hopeful of landing a new midfielder in time for the start of the Premier League, where he will be aiming to improve upon the club’s disappointing league form from last season.

In other Everton transfer news, they are set to agree a loan deal with Turkish giants over the club’s big money striker.