Burnley chairman Barry Kilby has held initial discussions with manager Steve Cotterill about extending his contract at Turf Moor.

The 41-year-old has done an impressive job since taking over in the summer of 2004 and with a season and a half remaining on his current deal, a new contract is under discussion.

Speaking at the club's AGM, Kilby, who also revealed the club are losing £20,000 a week, said: "We are halfway through Steve's contract and I've had discussions with Steve about extending it.

"That is now in place and we'll have to see what comes of it because the two parties have to agree on that. Compensation clauses are common in manager's contracts, so that's all I can say on the matter.

"But Steve and myself have had a couple of discussions in the last month about his contract and there are a lot of things to consider on this and both parties have to agree."

Meanwhile Cotterill reckons the club could be even higher than they are in the table.

The Clarets have flown from bottom to sixth in the Championship with a run of seven wins in nine matches.

But Cotterill, whose side beat Leicester 1-0 at the weekend, believes his team did not get what they deserved before the current spurt.

"When you play these back-to-back games so close, they're difficult so we were delighted to register six points from Leicester," Cotterill said.

"We had an awkward start to the season gathering points, but if we could've turned a few of those draws into wins and a few of the defeats into draws, we would've been higher than we are now, but I think we're getting our rewards at the moment."