The 30-year-old Scotland centre-half will be handed the deal when he returns from international duty in Denmark this week.
Hendry, 30, still has a couple of years of his present contract left but is now trailing some of the bigger earners at the club. The deal, until 2000, could also make Hendry eligible for a testimonial as he will have completed 10 years' service by then.
A Spanish pay channel, Canal Plus, has offered over pounds 1bn for the rights to the Spanish league for the next seven years. Clubs would double their annual income if they accept the offer from the station, which already transmits one league game a week.Reuse content