This does not necessarily mean that he will play there. Before he signed his last contract with the Phantoms he signed a contract to play in the RHL and ended up back in purple, orange and black. If memory serves me correctly, it was about this time of the off-season as well.
I think this is good for Little. He may have a chance to go else where and win as the starter, before his career is over. I'm sure he'll be back in the Flyers/Phantoms organization again as a coach someday.