Ferguson is not ready to retire just yet

It is thought that Ferguson will put pen to paper within the next few days on a contract worth between �12-16m.

That would make the Scot the best-paid manager in Europe and keep him at Old Trafford until he is 65-years-old.

Ferguson said: "We have had good discussions and we are not far away. It could be done in the next week.

"The length of the contract is one of the areas we are discussing.

"How long should I stay on? It is a difficult one. I would probably think until I am 65 years old. That is a nice time to say `Do I want to go now?'

Now I'm really enjoying everything and I am very lucky - I can plan again Man Utd manager Sir Alex Ferguson

"I have made the point of saying that I am enjoying it and I have my health, and I think that is the way of looking at it."

United chief executive David Gill has moved quickly to tie up Ferguson's long-term future.

Ferguson had originally planned to step down in the summer of 2002, but reversed his decision and went on to win the Premierhship last season.

He admits now: "I do still think sometimes how close I was to going. When that happens, I consider what I possibly might have done with the time. How many times do you want to travel the world?

"Now I'm really enjoying everything and I am very lucky. I can plan again. We have a young club again with real depth."