LEICESTER CITY are hoping to conclude negotiations with Danny Tiatto before making a decision on whether or not to sign Sunderland winger Andy Welsh on a permanent basis.

Welsh has impressed since joining the Foxes on loan at the beginning of March and manager Rob Kelly is looking at a way of making the temporary switch a full-time arrangement.

The 22-year-old is due to play against Southampton this weekend before returning to Wearside to discuss his future, with a season in the Championship on the cards come August wherever he is.

And Kelly, who has successfully guided the club away from relegation trouble since taking over from Craig Levein earlier this year, admits he will be looking at ways of capturing Welsh.

"He's obviously Sunderland's player but he's got one more game left with us," said Kelly.

"He's someone I like - I knew him at Stockport and we also tried to sign him when I worked at Blackburn on Graeme Souness' coaching staff.

"But I'll have to speak to our people first and see what we can do before we go to Sunderland."

Sunderland only paid an initial £15,000 to Stockport in November 2004 for the Mancunian, although that could rise to £35,000 after an undisclosed number of appearances.

He has played just 23 times for the Sunderland first team and, with a real prospect the increase could be due, Welsh could be offloaded in the close season.

But, despite Leicester's interest, a permanent switch could be hindered by whatever happens to Tiatto at the Walkers Stadium.

The Australian, who also plays left midfield, is out of contract in the summer and is free to leave the club where he is captain.

Kelly is keen on retaining the services of the gritty former Manchester City man but concedes the decision could be taken out of his hands.

"Danny has had injury problems this season but is someone, from a purely footballing perspective, that I would like to do something with," he said.

"I will speak to Danny and see what we can do but I am sure a lot of water will go under the bridge over the next few weeks."

If Tiatto did stay at Leicester then the need to acquire Welsh would be less of a priority, although Kelly is keen on doing business with both.

The stumbling block could be if Sunderland demand a fee for a player who has struggled to make an impact at the Stadium of Light, although he did impress in the opening few games of this season's Premiership.

The fact that Sunderland's managerial situation remains up in the air will not help, while there will be question marks surrounding Julio Arca's future.

Arca is the only recognised left-winger in the Sunderland squad and there could be a decision taken to move on with yet another season outside the Premiership on the horizon.

In the meantime, the Argentinean is expected to be fit to face Arsenal on Monday provided he emerges through training over the next few days unscathed.

Arca suffered a recurrence of a hamstring problem against Portsmouth last Saturday and, after the squad were given the last two days off, he hopes to take part in training this morning.

l Zidane Zidane has announced he will retire from football after this summer's World Cup finals.

The 33-year-old France playmaker's contract at Real Madrid is due to expire in the summer.

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