The Icelandic striker seems happy to settle for a place on the bench with the Blues, while watching Hernan Crespo and Adrian Mutu spearhead their title challenge.
"I was given an extra year on improved terms and I want to end the speculation," he told the Evening Standard. "It's clear I'm staying here and that's final.
"The manager's told me I'm part of his plans. I wouldn't be coming off the bench or starting at all if he didn't rate me. It's a big squad and we all have to be patient.
"With a squad like this you can't expect to play every week, but whenever I've played I've scored. That can't hurt.
"I love it here and I've always said that. It's the club I want to be at and if I was ever to leave it wouldn't be in these circumstances.”
Meanwhile, the tabloids seem to be running out of imagination when it comes to Toon transfer rumours.
The Daily Mirror claims that we are interested in Barcelona’s Patrick Kluivert and Spurs’ Stephen Carr - no kidding lads - while the Evening Standard has resurrected the Kieron Dyer to Manchester United story.