The 29-year-old midfielder, who is currently on holiday, is considering his future after his agent spoke to Blues owner, Stephen Vaughan last night.

Chester had accepted an offer from Stockport County and given permission for Hatters' boss Jim Gannon to speak to him, but the Blues are now hoping the left winger can extend his stay with City.

Vaughan said: "I met Kevin's agent last night and offered the player an extended two-years on his existing contract.

"We had received an offer from Stockport and I've always said that we'd never stand in the way of a player wanting to play at a higher grade of football.

"But Kevin Ellison is an important part of Simon Davies' plans here at Chester and that's why we're hoping Kevin agrees to accept this extension to his contract."

Ellison himself seemed confused about his position at Chester after revealing he had received a call from managing director Bob Gray earlier in the week.

Ellison said: "I received a phone call from Bob Gray at Chester on Monday who told me the club had accepted an offer from Stockport and had given them permission to speak to me.

"I told him I still had two years left on my contract and I didn't want to go anywhere.

"I've since spoken briefly to Jim Gannon, but I don't know what is going to happen next because I'm now away on holiday with my family until later in the month.

"I know I had an indifferent season at Chester last season and I know I let myself and the team down from time to time with bookings and suspensions, but I finished the season as the club's leading goalscorer.

"I haven't got my agent involved with talks at Stockport while I'm away on holiday because I don't want to leave Chester."

Blues boss Simon Davies admitted Ellison had attracted interest from newly-promoted Stockport County.

Ellison is a former Stockport player and Gannon remains confident of clinching a deal for the left winger who top-scored for City with 11 goals last season.

Ellison almost rejoined County during January's transfer window until a last-minute hitch scuppered the deal, but this time Gannon is hopeful that the Liverpool-born front-man will return.

Gannon said: "We've had an offer for Kevin accepted, and we're due to speak to him.

"From the conversations we've already had, we're confident that Kevin is looking forward to meeting us. He's shown a keen interest to join us."

Gannon revealed that contractual difficulties at the Chester end were largely responsible for January's proposed switch breaking down.

Ellison was last at Edgeley Park between November 2001 and August 2004, following a £55,000 transfer from Leicester City.

He has since played, and scored goals regularly, for Lincoln City, Hull City, Tranmere Rovers and Chester.

Davies said: "Interest from Stockport County in Kevin Ellison has been on-going.

"Kevin Ellison is the sort of player that will always create attention from other clubs.

"Jim Gannon will still remember Kevin from the last time he was at Stockport.

"I will always take the stance that if someone is interested in one of our best players and the price is right, then a deal has got to be done.

"Kevin is one of my better players and he is of a calibre that will command a good price.

"I've spoken to Kevin and told him of Stockport's interest in him. Kevin is now away on holiday, but he will have agents working for him while he is away.

"But I know that Kevin is enjoying his time at Chester and he gets on well with the other players and all the backroom staff.

"If Stockport did come in with an offer and a deal did happen then it would be business as usual.

"But if Kevin Ellison decided to stay with us I would class him as an asset to our squad for next season."