Chelsea manager Claudio Ranieri has confirmed he has been offered a two-year extension to his contract.
The Italian insisted he is happy to stay at Stamford Bridge to try for a European Champion's League spot - but admitted the club faces an uphill battle to qualify after their defeat against Premier League rivals Liverpool on Sunday.
"Yes it is true that the chairman has made that offer," Ranieri told the London Evening Standard. "And I thank him very much.
"It is not settled yet but there is no problem. I am very happy at Chelsea, with the chairman and the staff. We have some good young players and this squad will get even better," he said.
"It is going to be very difficult now to make that final Champions League spot but I want to try. Our next two games, against Derby and Ipswich in the space of three days, are very important."
Ranieri took over as manager at Chelsea from compatriot Gianluca Vialli in September 2000, following stints at Fiorentina and Atletico Madrid.