Bilic agrees new Croatian contract

Bilic became hugely popular in Croatia after guiding the team to Euro 2008, knocking out England on the way (AP)

The Croatia coach Slaven Bilic, who has been linked with roles in the Premier League including the Manchester City job, has agreed to sign a contract extension next week according to reports in his home nation.

With Thaksin Shinawatra, the Manchester City owner, ready to sack current manager Sven Goran Eriksson in the summer, Bilic's move would appear to rule him out of a move to Eastlands after he has led his side in this summer's European Championships. However, it could also be a clever move by the Croatian Football Association that guarantees it a more lucrative settlement should Bilic move to another club.

The Croatian federation spokesman Davor Gavran said the new two-year contract will be signed on Monday. "It's a done deal," Gavran said on Wednesday.

Bilic, 39, became hugely popular in Croatia after guiding the team to Euro 2008, knocking out England on the way. He has been negotiating a new contract for months, asking for higher salaries for himself and his assistants, along with better training conditions for the team.

Bilic was a member of the Croatia team that finished third at the 1998 World Cup, and previously played for West Ham and Everton.

Federation officials did not reveal the terms of the new contract, but local media reported he would be paid about 1.2 million kuna (£130,000) per year from August.