Liverpool are closing in on a deal to keep winger Raheem Sterling at the club until 2020, sources have told ESPN FC.
Both club and player are hopeful that a contract can be sorted out within days. sources said.
Manager Brendan Rodgers revealed in early October that talks had begun between Impact Sports Management, who are Sterling's representatives, and club chief executive Ian Ayre.
Reports in December suggested that the 20-year-old had rejected an offer of 70,000 pounds a week, which is believed to be more than double his current salary. Recent reports have suggested that his new deal will be worth closer to 100,000 pounds a week.
But even though Real Madrid and Bayern Munich have been linked with the winger, Rodgers has always stated a belief publicly that Sterling is happy at Anfield.
Rodgers told a news conference on Thursday: "Raheem is a young kid who has burst on to the scene and been outstanding. I think he's shown that he's one of the top outstanding performers in the most competitive league in the world.
"He's just 20. He's got a lot of years of maturity and a lot of years left in his football education.
"There's absolutely no question he could go on and become one of the leading players in the world consistently."
Sterling, who was born in Jamaica and raised in London, joined Liverpool from QPR's Academy in 2010, at the age of 15.
His current contract, which runs until June 2017, was signed in December 2012, nine months after he made his senior debut for the club in a Premier League match against Wigan.
Sterling is set to return to the Reds' lineup at Sunderland on Saturday after a short break in Jamaica.
Rodgers gave him a mid-season breather to reduce the risk of burn-out after a demanding 12 months, during which he established himself as a regular in the England side.
The winger, who has made 26 starts for Liverpool this season, missed Monday's 2-1 FA Cup third-round victory at League Two side AFC Wimbledon, but will be available for the Premier League trip to the Stadium of Light.