Town target Daryl Murphy has signed a new contract with current club Waterford United. The Blues took striker Murphy on trial before Christmas and are expected to look at him in a second spell next month.

Waterford manager Alan Reynolds says he is pleased his star man has committed himself to the Eirecom League club until November 2006: "I am delighted that Daryl has decided to extend his contract.

"He was in tremendous form last season and seemed to get better as the year progressed. Given his potential, I have no doubt that Daryl will continue to improve and his decision to stay at Waterford United is a huge boost for the club and the rest of the squad."

However, despite Reynolds's hopes of keeping Murphy, the deal seems mainly aimed at making sure Waterford get a decent fee for a player they rate in the £200,000 bracket.

Town had hoped to land Murphy for a small fee, his previous deal ending in November of this year, but this now looks unlikely. Manchester City and other English clubs have also been keeping an eye on Murphy's progress.

The Ireland U21 international, a former Luton Town trainee, was at Town in early December but was forced to return home early by a groin injury. Murphy, 21, scored 22 goals during the 2004 Irish season.

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