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"I'm absolutely delighted," McVeigh said. "I never expected to get a contract when I came back, it was purely to be training and keeping my fitness up. I'm delighted the manager has offered me a contract now."
Returning to a club that has now dropped another division, he added: "I think the club is completely set up to be in the Championship if not the Premier League. With the stadium, training ground and fans, if the manager can get things in place on the pitch, hopefully we can get the job done."
Gunn commented: "I'm pleased to have Paul on board for next season. He has impressed everyone at the club in pre-season whether it be in fitness tests, training or in matches.
"I was open minded about him coming back to train with us in the summer but he has really made a great impression, not just on those that knew him before but also on Ian Butterworth and Ian Crook who had not previously worked with him.
"His attitude and commitment are first class. He is very keen to succeed with Norwich City next season."