Lampard, after weeks of wrangling, has finally been offered the deal he wants at about £150,000 a week and is poised to commit himself to Stamford Bridge for the rest of his career.
A Chelsea source said: "The club are desperate to keep hold of Frank. They had talks with him just before the China tour which they hope will finally convince him to stay long term. I know Frank is very tempted by the offer as it means he could potentially see the rest of his career out at Chelsea, and there is every chance he could sign.
"However, a lot of bad feeling was created when details of the contract negotiations were being publicly discussed by the club and there are still some issues to iron out."
