Now however, it appears that Magilton, who also offered to step down as Skipper of the club has not actually signed on at the club for the 2005/6 Coca-Cola Championship season and may still leave Portman Road.
Speaking to the Belfast Telegraph the former Northern Ireland International said: "I don't know why the club put it out that I had signed earlier in the week because they know as well as I do that I haven't signed anything.
"I had a meeting again on Tuesday, but there are still a few details that need to be sorted out before I sign.
"The club may try to force me to sign by threatening to withdraw the contract offer, but that's up to them. At this stage of my career I am starting to think about what I will do after I finish playing and my next move may have to be along those lines.
"On the other hand things could be sorted out very quickly and I could sign in time to play in our first friendly next Wednesday."