Republic of Ireland manager Giovanni Trapattoni is set to sign an extension to his contract this week which will see him lead the country into the 2014 World Cup qualifying series, according to BBC Sport.
The new deal is believed to be worth five million euros over two years to the Italian and his management team.
Trapattoni is due in Dublin on Wednesday to sign the contract which will see his salary reduced to 1.5m.
He will then travel to Kiev for Friday's draw for the Euro 2012 finals.
"We have agreed in principle and everything is going forward but it is not signed," Trapattoni told the Sunday Independent.
According to The Independent Trapattoni's salary has been cut from 1.7m euros a year to 1.5 million.
His assistant Marco Tardelli and fitness coach Fausto Rossi will again form his backroom team.
Irish businessman Denis O'Brien will continue to contribute a significant proportion of the Italian trio's pay.
Trapattoni, who has spoken of his desire to manage a side at the World Cup in Brazil, is hoping to avoid England in the Euro 2012 draw.
"I would prefer to play them in a friendly. I'm well aware of the history between two nations," said the 72-year-old.
"I'm not concerned about direct confrontation with (Fabio) Capello because coaches are always above anything that concerns the two countries, but it's more the atmosphere and the history of the two countries."
The Republic made it into the finals through the play-offs, beating Estonia over two legs, after finishing second to Italy in their qualifying group.