The Daily Mail says Rooney and United have been in talks about a £300,000-a-week deal after the 28-year-old finally gave up on the idea of joining Chelsea.
The new contract has not yet been signed and Rooney is currently in Dubai on a training break with manager David Moyes and the rest of the United squad.
However, it is understood that talks are on the brink of being concluded successfully and that an announcement should be made in the early part of this week.
Rooney's basic salary will remain pretty much the same as in his current £250,000-a-week deal but it is understood that the performance-related incentives built in to it will take it closer to the £300,000-a-week mark. It will be for four-and-half years, meaning that he can expect to remain at Old Trafford for the best years of his career.