Matsos believes it is an exciting time at the club

Matsos told BBC Radio Sheffield: "Negotiations are going well and I expect to be here next season."

The Steelers have made steady progress since the Ontario native took over two summers ago, finishing second in the Elite League this season.

General manager Mike O'Connor said: "It will be great to keep Matty long term, it will keep stability at the club."

Matsos joined the Steelers in the summer of 2006 after Dave Whistle quit the club a month before the season began.

They finished sixth in the league and failed to make the final four of the play-offs.

It is an exciting time for everyone at the club and I want to be here Sheffield Steelers head coach Dave Matsos

This term things have gone much better, with Steelers runners-up in the regular season and the Challenge Cup, and they are one of the favourites for the play-offs next month.

Matsos is happy with what he is building and said: "With the new rinks coming in 2010, it is an exciting time for everyone at the club and I want to be here.

"I love life in Sheffield and I have the core of players that I believe in."

Meanwhile, plans to move to the 5,000-seat purpose-built arena at Rother Valley will make a massive difference to the core business of the team according to O'Connor.

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"The Steelers have always led the way in British Ice Hockey and this is a massive step for us," O'Connor said.

"The fact that we will be able to put our needs first, rather than at the Arena where we can get bumped if there is a concert in town, I think, will bring great stability to the team, which is very exciting for me."

The twin pad facility will be built on land above Rother Valley Country Park and it is expected to have a number of restaurants and bars, as well as two hotels with conferencing facilities.

Planning permission for the site will be submitted later this year.

Hear Dave Matsos speak about the future on BBC Radio Sheffield Steelers Hockey on Wednesday from 1900 GMT.