Arnar Gudjohnsen made these new revelations on Planet Football, after he had previously said that the deal was off.
"Yes, Chelsea have been back on to us and the deal is on the table again. I don't know what has been going on. Eidur got a call from Trevor Birch to say the deal is back on and he is set to sign it tomorrow.
"For what has happened, there is no explanation. Apparently the new owner likes him a lot and wants him to sign the deal. Eidur has been laughing about the whole thing he cannot believe what has happened.
"These have probably been the two craziest days of his life. He is happy it is all cleared up and he can put it to the back of his mind and focus on his football which is what he always wanted to do."
Little is known at the moment as to the terms of the deal although it would appear to be a one year extension to his present deal. But it seems strange that the club would withdraw an offer only to put it back in just hours later.
But I for one would like to see Eidur sign up as he is clearly a player of real class! And it will keep prying eyes away from one of Europe's hottest talents.
We'll bring you more on this story as it comes in...