Pelter is one of eight players who have been told by Sunderland manager Roy Keane that their deals will not be renewed.

English-born Pelter, who grew up in Christchurch after emigrating with his family as a child, was named in New Zealand's preliminary Olympics squad recently.

The central defender joined Sunderland last August after being spotted by scouts at the Under 20 World Cup but he has not made a first team appearance for the Black Cats.

Keane was Pelter's hero as a youngster and even wrote a school paper about the former Manchester United captain. But he won't now get the chance to play under Keane.

However, a return to New Zealand with Phoenix looks unlikely at this stage with sources close to the club confirming that strikers are top of the shopping list.

Coach Ricki Herbert has already boosted his defensive options with the capture of former Newcastle Jet Andrew Durante.

Pelter's former boss Keane has been in New Zealand this week observing the All Blacks' preparations for the test against Ireland in Wellington.