The 24-year-old has made a huge impact since his £600,000 summer switch from Motherwell and he netted his 30th goal of the season in a 2-1 win over his former side last week.

That rising form has made him a £6million target for Premiership predators Newcastle with a host of other English sides eyeing up the Australian, above.

But, with Celtic acutely aware of his rising value to the team on the park and in any potential
bidding war between Premiership sides, they are set to kick off talks with McDonald this week on extending his stay until 2012.

McDonald penned a three-year deal when he joined his boyhood heroes in the summer but is on substantially less than some of the club’s high earning flops such as Bobo Balde and Thomas Gravesen.

And, while there is no desperate need for Celtic to tie down McDonald with more than two years left on his existing deal, they don’t want to risk losing their prized asset.

McDonald could easily command a salary of £25,000-a-week at any Premiership side but is keen to pledge his future to the club he supported as a youngster growing up in Melbourne.

The news that both parties are showing a willingness to commit long-term is a timely title boost to Celtic.

Fans have taken McDonald to their hearts as the new hero to take over from Henrik Larsson.

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