When the club released their retained list a month ago, they explained that Vydra, along with Jack Cork, “remain in discussion with the club over a contract extension”.
Cork has since signed a two-year deal, but the Czech Republic forward is now a free agent, after his contract expired at the end of June,
The 30-year-old striker has been in talks over a new two-year agreement, as he works his way back from a ruptured cruciate knee ligament.
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However, there is yet to be a breakthrough, with the player keen to stay at the club, but not on the terms currently on offer.
Vydra is continuing to work on his rehab, and is relaxed about the situation, with other clubs checking on his situation.
He is fully concentrating on his recovery, after receiving good news last month when visiting renowned knee surgeon, Professor Andy Williams, in London - who has helped treat the likes of Michael Owen, Theo Walcott, John Terry, Lawrence Dallaglio, Andrew Flintoff and Shoaib Akhtar.
Williams was surprised by his progress, with Vydra thought to be around a month ahead of schedule, as he targets a return around the turn of the year.
After suffering the injury in the 2-1 win at former club Watford, where he laid on an assist for Josh Brownhill’s late winner, he missed the last four games of the season, as Burnley were relegated from the Premier League on the final day of the campaign.
However, he was with the group in the build up and at the last game against Newcastle, on his crutches, as he showed his support for his teammates, along with fellow long term injury victim Ashley Westwood, as interim boss Mike Jackson explained: “For me that is everything, having them around. They are big characters and players, so even if they are not involved, when the group sees them, it keeps them at ease and they know they are with them and they can lean on them.
"That is really important. I can't believe I have seen Vyds in hobbling round on crutches, but he wants to be here, the same with Ash.
"They know how important it is. Westy is in the gym sweating and looks in unbelievable nick! That is the type of character he is and that can only rub off on your mates.”
Jackson added: “His contract will be going on in the background. This club doesn't work any way other than that and for me personally that is how it should be, you support your players.
"He has been injured as one of our players so there is no way he is going to be thrown away. It won't happen and it won't be allowed to happen, no chance.”
The last time he played in the second tier, Vydra was the Championship’s top goalscorer with Derby, netting 21 goals in 40 games to seal an £11m move to Burnley.