Kenny Dalglish is in line for a long-term contract at Liverpool before April.
The Sun says Anfield owners Fenway Sports Group are close to offering the Kop caretaker a full-time two-year deal, with a possible extension if results go their way.
Yet John W Henry, frontman for FSG, is set to wait until the Reds have come through three vital games over the next fortnight before acting.
Liverpool face a Europa League return with Braga on Thursday, trailing 1-0, followed by Premier League trips to Sunderland and West Brom.
And Henry believes that will offer the final proof that the club is moving in the right direction.
