The extension would see the Portuguese boss remain in charge of the club until 2022, making it the longest reign in his managerial career.
Mourinho, 54, is currently on a salary of around £250,000-a-week and while that basic rate is set to remain, there will be a huge increase in bonuses for trophies and league positions, according to the Sun.
Meanwhile, United have been given a double-injury boost ahead of the weekend – although neither player in question will be fit in time to face Liverpool at Anfield on Saturday.
Paul Pogba, who has not played for over a month after sustaining a hamstring injury, gave a positive update on Instagram on Wednesday, showing himself running on a treadmill.
The Frenchman’s teammate Zlatan Ibrahimovic was also pictured arriving at Carrington as he recovers from the cruciate ligament injury he sustained in April. The Swede is expected back before the New Year.
United’s hopes for the season after their strong start will feel even more promising with those two back in the squad.
One man who is set to stay at Old Trafford after reportedly turning down a lucrative deal from the Chinese Super League is Juan Mata.
The Spaniard is out of contract at the end of the season but United are ready to trigger an extension clause to extend his stay by 12 months, according to the Daily Mirror.
If the latest rumours are to be believed, Mata could be joined at Old Trafford by left-back Danny Rose.
The 27-year-old has not played a single minute of Premier League action so far this season through injury but is highly thought of by Mourinho.
Chelsea are also said to be keen on Rose but the English has his heart set on a move to United and the club are set to offer Tottenham £45m for his services in the January transfer window, according to the Daily Star.
Police are set to monitor motorway bridges ahead of the Anfield clash on Saturday in a bid to stop offensive banners being placed along the M62, according to the Daily Mail.
Two men were charge with public order offences last season, leading both United and Liverpool to release a statement calling on fans to help “eradicate any offensive or discriminatory behaviour”.
And finally… United old boy Paul Scholes has reportedly held talks with Oldham Athletic about aking the reins after the League One club sacked manager John Sheridan.
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