Antonio Conte will sign a new £9.5 million deal to remain at Chelsea until 2021 after receiving assurances that progress is being made on transfer targets following a disagreement last week.
Chelsea director Marina Granovskaia appears to have mended the temporary rift with Conte on Sunday as she addressed the issues of transfers and a new contract.
Conte will become the seventh highest paid manager in the world and the third highest in England after verbally agreeing to the fresh terms, which comes off the back of initial doubts about whether he would remain at the Premier League champions after news emerged in Italy that he was unhappy with how Chelsea's transfer business was being handled.
Chelsea remain confident of completing deals for Everton striker Romelu Lukaku, AS Monaco's Tiemoue Bakayoko and Manchester City's Willy Caballero and they have convinced their manager that negotiations are being handled correctly, despite the slow progress.
The 47-year-old is currently on holiday in Italy and is close to securing a new home close to Chelsea's training ground ahead of his wife and daughter's move to join him in London. He has also secured a place for his daughter at a London school.
Conte will be back as Chelsea begin pre-season on 7 July and is expected to take part in some low profile friendlies in England, ahead of a lucrative tour of the far east to face the likes of Arsenal, Bayern Munich and Inter.
Chelsea will then face Arsenal in the Community Shield and Burnley in the Premier League on the opening day of the season.