David Moyes is expected to sign a new long-term contract before the new season starts next month.
The Everton manager, who has just one year left on his current deal, has confirmed that meaningful talks have started with owner and chief executive Bill Kenwright.
The club and manager - who has been in charge at Goodison Park for six years - have held preliminary discussions since towards the end of last term, but nothing had been concluded.
And it had been suggested that Moyes wanted to see what transfer budget he would have, and whether the club concurred with his long-term plans for Everton's future, before committing his future to the club.
Now Moyes has told the Liverpool Echo: "We have started talks and we are hoping things will be wrapped up quickly."
Discussions are believed to have commenced in earnest at the weekend when Moyes and the Everton squad flew back from their Swiss training camp, having lost their only game 1-0 to FC Sion on Saturday.
Reports at the weekend suggested that Moyes would sign a new five-year deal worth around £3million a year.
Moyes, 45, would see his salary almost double, the reward for establishing Everton as a top six club and taking them into Europe three times during his reign on Merseyside.
Moyes has yet to sign a player so far this summer, but new contract talks will clearly give him the green light to improve his squad.
It is likely that striker Andrew Johnson will be sold for around £10m, with Fulham, Wigan, Sunderland and West Ham believed to be in the hunt.
Moyes could well try to hijack Arsenal midfielder Gilberto Silva's proposed move to Panathinaikos, while he is also interested in Manchester United midfielder Darren Fletcher, despite lukewarm interest from the champions and the player.
He is also interested in Real Zaragoza's Argentina striker Diego Milito and Swiss defender Stephan Lichtsteiner, who plays for French club Lille and kept Liverpool's new full-back Philipp Degen out of the Swiss side at the Euro 2008 finals.