Rafa Benitez is ready to sign a new deal with Liverpool.
The Kop boss this week told the Anfield board he would rather stay than go - despite renewed interest from the Spanish giants.
Now Spaniard Benitez is closing in on an agreement that will keep him on Merseyside until at least 2012.
Following talks with American owners Tom Hicks and George Gillett, both parties are confident a deal will be struck before Christmas.
Benitez said: "My advisers were in contact with them and we are waiting for a new contract right now. Sooner rather than later we will have another communication."