Jose Mourinho will agree a two-year contract extension at the end of this season, committing him to Chelsea until 2009.

Mourinho has yet to sign the contract, which it is believed will raise his basic pay from £4.2m to £5.2m a year, but is content with the terms. Among them are believed to be bonus clauses potentially earning the Portuguese coach an extra £3.4m a year.

"Everything is arranged on the contract," a friend said yesterday. "He will be at Chelsea four more years." Having won the Premiership to add to the League Cup, Mourinho is already set to boost his earnings this season with at least £1 million in bonuses, irrespective of tonight's match.

When Chelsea's hierarchy advised him not to appeal the two-match touchline ban he received after the Champions League defeat at Barcelona - ruling him out of the quarter-final with Bayern Munich - Mourinho let it be known he would consider his position this summer. But he has received assurances about how such crises should be handled, prompting him to inform Roman Abramovich that he will accept his contract offer.

"Now everything is clear for Jose," said the friend. "Everyone understands each other."