Bayern Munich coach Ottmar Hitzfeld is to extend his deal with the club by a year to 2005, club president Karl-Heinz Rummenigge told Bild am Sonntag weekly.
"We are going to extend the deal to June 30, 2005," said Rummenigge, who said it was "probable we will work together beyond that date."
Hitzfeld, 54, who has won the Champions League with both Dortmund and Bayern in the past six seasons, is believed to have offers from several top sides - and has been touted in the past as a successor to Alex Ferguson at Manchester United.
Hitzfeld has declined offers to extend the deal by more than one year, telling reporters that "I am in the comfortable situation of always having a few good offers. But I enjoy my work here."
As well as the 2001 Champions League, Hitzfeld has also won three Bundesliga titles with Bayern.
Rummenigge said that after the club's early elimination in Europe this season "Ottmar Hitzfeld turned the screw" to put Bayern back on track in the league title race.
They currently have a mammoth 15-point lead over nearest rivals Dortmund.
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