Pep Guardiola is expected to sign a new contract keeping him at Manchester City for another three years.
The Spaniard's current deal expires in 2019 but Guardiola's representatives have been in talks with the club for the last few months over an extension.
Now Guardiola is understood to have agreed fresh terms - which will see his annual salary rise to around £20million a year.
City plan to announce the deal once they have won a trophy, which could be as soon as Sunday.
They face Arsenal in the final of the Carabao Cup - live on talkSPORT - and are bidding to win their first piece of silverware under Guardiola.
Guardiola has been in charge of City since the summer of 2016, when he succeeded Manuel Pellegrini .
His first season ended in disappointment as City finished 15 points behind Premier League champions Chelsea and failed to win a trophy.
But his side have been dominant this season and are on course for major success.
As well as reaching Sunday's Carabao Cup final, they are 16 points clear at the top of the Premier League with 11 games left of the season and on the verge of reaching the Champions League quarter-finals.
Guardiola has refused to give any assurances over his City future beyond 2019 but has now decided to stay until 2021 at the very least.
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