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How do you know we've even offered a new deal? In the interview Bozza posted, he says there will be talks with the club once he's finished his international commitments at the start of July. Of course, he may not want to sign a new deal but from the outside this process looks pretty standard.

Why does it mean he won't sign an improved contract being offered? Triggering the option is merely a formality to allow us time to either a) negotiate a longer-term contract b) sell him

Well yeah, the whole point of the club holding an option is that it's up to us to activate it or not.

No, it doesn't mean a deal can't be agreed. We exercised Welbeck's option year and then he signed a new contract a few months later.