Discussing the news, Luton boss Nathan Jones said: “We are delighted to get it done. Pelly was out of contract, so it was his prerogative to test the water and see what was out there.
“It’s taken a little bit longer than we would have liked, but the process was thorough on their part, and he knew all along that we wanted to keep him. He had a fantastic season and he’s only going to get better.
“He sees that and we are delighted to get him done because he’s an important player for us. I think we’ve been patient, but professional in terms of saying to him ‘look, you are our player, we want to keep you because you are important to us and have been on a journey with us’.
“Thankfully we’ve done that so it’s a big signing for us because he’s important to us, we care about him and he plays his best football when he plays for Luton. Now we are just looking forward.”
Here’s look at today's latest transfer talk and the latest team news involving Luton Town and the rest of the Championship, as build-up to the eagerly-anticipated new season and the summer window reaction continues:
1. Championship-linked striker heading to Turkey
Middlesbrough and West Brom-linked striker Famara Diedhiou looks set to disappoint a host of English sides, with his next move looking likely to be to Turkey. The ex-Bristol City man is believed to be closing in on a move to Super Lig side Alanyaspor, who have fellow Senegal international Khouma Babacar o loan. (Bristol Post)
Photo: Paul Harding
2. Race for Bannan hots up
Brentford and Swansea City have been tipped to go head-to-head in the race to sign Sheffield Wednesday ace Barry Bannan. The Scotsman is said to have a £1m release clause in his contact, and could well be snapped up this summer. (Sky Sports News)
Photo: Nathan Stirk
3. Boro could beat Posh to Crooks
Peterborough United's hopes of signing Rotherham United ace Matt Crooks look to be in jeopardy, with reports claiming Middlesbrough are closing in on the midfielder. Derby County are also believed to be keen on the player. (Football League World)
Photo: Alex Livesey
4. Blades knocked back by Wolves
Both Sheffield United and Barnsley are said to have been knocked back by Wolves, as the two sides look to land their defender Max Kilman. The 24-year-old made 18 Premier League appearances last season in Nuno Espirito Santo's final season in charge. (Football League World)
Photo: TIM KEETON