The Iceland midfielder shined in his first season at the Ricoh Arena after signing from AZ Alkmaar and has been linked with Fulham and Celtic.
But the 20-year-old plans to stay with the Sky Blues and continue his education under Chris Coleman.
He told the Coventry Telegraph: "It is always nice to see that other clubs are interested in you because then you know you are doing something good.
"I feel I have developed from game to game, week to week, after coming here from Holland with no-one knowing who I was. But I have only just turned 20 and I need to learn things.
"Even though I have won player of the season, that doesn't make me the perfect player, so I need to learn stuff and I feel I can do that here with Chris Coleman. I have so many things to learn and hopefully I will sit down with the chairman and the gaffer and talk about my new contract."