Michael Keane has said there are no regrets over Burnley’s refusal to sell him to Leicester City but admitted he does harbour hopes of Champions League football.

The central defender was the subject of several failed bids from the Premier League champions in the summer, including a final offer of £15m, and has been linked with a January move to Chelsea. They are reported to be considering a £25m offer for a player sold by Manchester United for £2m only last year, with Antonio Conte seeking a long-term replacement for John Terry.

Keane was a commanding presence as Sean Dyche’s side won the Championship title last season and has brought that form into the start of the Premier League campaign, sealing the 2-0 victory over Watford on Monday with a second-half header. Burnley became the first team to prevent Watford from scoring this season in the process and, despite the reported interest, the 23-year-old is content at Turf Moor.

The defender said: “It’s flattering when teams like Leicester come in but I am really happy here. The fans have been brilliant with me here, as have the manager and players. It’s great when teams like that come in but I am quite happy. I won’t be looking at Leicester in the Champions League thinking: ‘That could have been me’ because I tend to think what will be, will be. Hopefully at some time in the future I will get to that level anyway. Leicester have done brilliantly and I will be supporting them because I was there on loan [in 2012-13] but I’m not disappointed I am not there.”

Keane made only five first-team appearances for United – four in the League Cup – before making a loan move to Burnley permanent in January 2015. “When I was at United I was disappointed not to get too many chances or many games but coming here was the best decision I ever made,” said the England Under-21 player, who has two years remaining on his contract. “I have grown as a player and playing week-in week-out helps you improve so much. And playing in the Premier League helps you become even more comfortable.”

The Stockport-born defender was part of United’s FA Youth Cup-winning team in 2011 alongside his brother Will, Paul Pogba, Jesse Lingard and Ravel Morrison. He said: “They were good times, coming through the academy together, but it seems a lifetime ago now and we’ve done a lot since. I stay in touch with Paul, I saw him a few weeks back when he came back and I am one of Jesse’s best mates. It’s good that a lot of that team have kept in touch – it was a top team, with a great spirit, and every now and again we get together.”

Burnley host Arsenal on Sunday having taken seven points from their last three home matches, a sequence started by the 2-0 defeat of Liverpool.

Keane added: “Arsenal played pretty well and got a great result against Chelsea so it will be tough, just as the Liverpool game was. We showed against Liverpool that if we are on our game and can be organised, we can frustrate teams. We will go into it with confidence. Turf Moor became a fortress for us last season and it would be nice if we could kick on and do the same now.”