Manchester United in talks to reward Sir Alex Ferguson with new £7.5m-a-year contract to make him best paid manager in Britain

Sir Alex has been offered a £6.5 million-a-year basic contract supplemented by up to £1m worth of bonuses for a trophy clean sweep.

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His deal will remain on the same one-year rolling terms that he first committed himself to in 2004 but the new offer represents a 60 per cent pay hike on his current £4m-a-year contract rising to £5m. The structure of the £1m top-up bonuses would remain unaffected by the new agreement.

United want the most successful manager in their history to formally accept the offer by the summer.

Sir Alex’s pay hike will leapfrog him above Arsene Wenger to become the best paid manager in the Premier League and will be worth more than the £6.5m-a-year salary that Carlo Ancelotti earned at Chelsea.

The Scot was told by United chief executive David Gill last October that the Glazer family wanted to recognise his phenomenal achievements, which have included a Champions League crown and four Premier League titles since the Americans took full control of the club.

At the time the Glazers were in the dark about the United manager’s long-term plans but since making the offer to Sir Alex’s camp, he has come out publicly and said that he hopes to have three more years in charge.

“All the talk at the top of the club over the last few months has been of a three-year plan,” a United source told Goal.com. “The Glazers were not sure of Ferguson’s plans so asked David Gill to tell him that his achievements over all these years would be recognised with a deal that would make him the best paid manager in British football.

“There have been a few rounds of talks and the club want it sorted before his annual holiday to the south of France at the end of the season.

“It makes good business sense for the club and the Glazers. Ferguson has always been loyal to them and they feel it is time he was rewarded for the job he has done.”

It is understood that neither party feels the need to adjust the length of his one-year rolling deal, which means that Sir Alex is only entitled to 12 months’ severance pay and, in theory, gives United little long-term security.

Loyalty bonus | The Glazers want to reward Sir Alex for his United achievements

But the most successful manager in the history of British football, who celebrated a quarter of a century in charge at Old Trafford last November, has confirmed his intention to remain in the job well into his 70s.

“I hope I have a long time left,” said Sir Alex in an interview on New Years’ Eve to mark his 70th birthday. “As long as my health stays up, I would hope to have another three years at the club. I am still enjoying it.

“As someone who loves his job I am not about to let my years alone dictate my future. At my age health becomes the key issue for a man's work and I am happy to say I have been blessed with stamina and energy that sees me coping with what I admit is a very demanding job.”

Sir Alex’s salary is currently relatively meagre compared to his managerial colleagues, who have been less successful in trophy terms.

Wenger signed a £6m-a-year basic deal in 2010 potentially rising to £7m with top-ups, and in recent times there have been other Premier League managers in this bracket, including Ancelotti, Rafael Benitez and Luiz Felipe Scolari.

Somewhat perversely, Juande Ramos was believed to be the highest earning Premier League manager during his 12-month spell at Tottenham, earning a £5.8m-a-year wage.

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