Vignaroli, 33, was pivotal to the Jets' success during the recent AFC Champions League 2009 campaign and has been the focal point of the club's recruitment process over the past few months.

The pint-sized Italian looked to be n his way out the club yesterday after refusing to train with the squad and negotiations apparently at an intractable stalemate.

New Jets coach admitted his plans for the season were in tatters and he was going to have to overhaul his team selection just days out from the start of the season.

"I came to training with one team in mind - now I have to look at other options," he said yesterday, as Vignaroli appeared headed for the airport and a return to Italy.

But tonight after hours of contract talks in Sydney, the club has managed to pull off a deal at the last moment at a meeting between the player, club Chairman Con Constantine and Director of Football Remo Nogarotto.

"Tonight we have ended the rumours and speculation. We sat down and spoke about the issue and agreed to terms," said Constantine.

"It was disappointing to see that there some rumours going around today in certain sections of the media, but we move on and we do so with Fabio in a positive manner.

"As Chairman of this club, I want all of our supporters, sponsors and members of the club to be assured that we are creating a strong squad here in Newcastle and we are doing everything possible as we move toward success."

These were sentiments echoed by club chief executive John Tsatsimas who said that the agreement is an important moment for the 2007/08 champions.

He added: "Fabio is a class act both on and off the field, and naturally we were always extremely keen to have him on board for a length of time.

"The talks have taken some time but certainly the important element is that both parties are happy where things stand and it's definitely a wonderful moment for the Newcastle Jets."