The leg-spinner’s Headingley future was thrown into doubt following his controversial England recall, having turned his back on domestic red-ball cricket with his county earlier this year. Yorkshire’s capture of young leg-spinner Josh Poysden from Warwickshire appeared to signal the end of his 12-year affiliation with the county.

The new contract would see Rashid make himself available for all forms of the game, which England will demand if the leg-spinner wants to remain part of their Test plans going forward.

The news comes after Worcestershire and Durham were reportedly interested in signing the wrist-spinner who has taken 500 first-class wickets.

Rashid is expected to be named in England’s ODI squad to face Sri Lanka next month.