CELTIC manager Ronny Deila last night reacted angrily to relentless speculation that he is on the brink of agreeing a loan deal with Real Madrid for 16-year-old Martin Odegaard.

Midweek reports from overseas stated that the SPFL Premiership champions had agreed a 12-month deal to reunite Deila with the attacking midfielder he brought through the ranks at Stromsgodset.

However, the Norwegian moved to clarify the situation following the weeks of rumour and counter-rumour that have unfolded since he met Odegaard at a match in their homeland while on holiday at the end of May.

Real Madrid's new head coach, Rafael Benitez, has had Odegaard included in the early stages of pre-season with the rest of the first team and it is believed that he intends to watch him closely over the course of the next month or so before making a decision on his immediate future.

Getafe, Villarreal and Rayo Vallecano are all interested in taking the Norway international - Odegaard already has six caps - on loan should Benitez opt to farm him out and Deila is irked by the suggestion he is on the brink of signing the player after putting an official proposal to Real Madrid.

"I don't understand how that is coming out," he said. "It is totally out of nothing. I spoke to him one time, in May, but that was just friendly. It was nothing about a contract and it's nothing that we have on our minds.

"Martin is staying there. I don't know what is happening with him, but there's nothing to make you say he's going to Celtic now."

Meanwhile, Celtic's Champions League opponents Stjarnan are in crisis after losing 2-1 at home to Valur on Friday night and remaining stuck in mid-table in Iceland's Urvalsdeild with just four wins from 11 games.

"It was not good enough from us," said head coach Runar Pall Sigmundsson, who brings his side to Glasgow in the first leg of the second qualifying round tie on Wednesday.

"They scored from one of their attacks in the first half when there were four defenders against one striker. We lost two unnecessary goals and it was a mess on our part."