Transfer gossip (Monday, June 20): Town close in on striker; Tigers and Owls battle for striker; Boro snubbed

Paterson made a positive impact in 38 appearances for Town in a season-long loan spell in 2015-16 - netting six goals in the process.

Reports previously suggested that Huddersfield had a deal in place for Paterson at the end of the season. But the move was put in jeopardy by Dougie Freedman’s departure and Fawaz Al-Hasawi’s decision to sell Nottingham Forest.

Sunderland striker Steven Fletcher is continuing to interest the likes of Celtic, Aston Villa, Hull City and Sheffield Wednesday, although the Owls’ interest in him is set to cool due to his current weekly wages of £40,000.

Fletcher scored four goals in 16 Premier League games for Sunderland last season before switching to France with a loan deal at Marseille for the rest of the campaign.

Former Sheffield United trainee and Millwall forward Lee Gregory is on the wanted list of the Owls, Celtic and QPR - after the Yorkshireman’s haul of 27 goals for the Lions last term.

Wednesday have made tentative enquiries regarding the availability of the 27-year-old, who used to partner Jamie Vardy at FC Halifax Town.

Meanwhile, England and Leicester star Vardy is set to reject an offer to join Arsenal and stay with the Premier League champions.

The 29-year-old England international has not made a final decision, but is understood to favour extending his time at the King Power Stadium.

Arsenal made a reported bid of £20m for Vardy, activating a release clause in his contract and offering him a deal reported to be worth £120,000 a week.

Leicester responded with an offer said to be worth £100,000.

Arsenal do not plan to improve their offer and are thought to be pursuing alternative options.

Vardy, who joined Leicester from non-league Fleetwood Town for £1m in 2012, signed a three-year deal in February, and the Foxes’ new offer would extend that into a fourth year.

West Bromwich Albion midfielder James Morrison is set to sign a new contract and snub a return to former club Middlesbrough.

Morrison, 30, joined Boro as a 12-year-old way back in 1998 having been born in nearby Darlington, and went on to score seven goals in 98 appearances as a first-team player for Boro.