Aston Villa manager David O’Leary is to have further talks next week with chairman Doug Ellis over a new contract after admitting that initial discussions had “went well enough”.
O’Leary is halfway through a three-year deal with Villa but both parties are keen for the former Leeds boss to sign a long-term commitment.
O’Leary said: “We just had a preliminary first round discussion and it went well enough. It is as simple as that really.
“Nothing has been finalised but hopefully there will be another meeting in a week’s time.
“I’m going to wait for the chairman to get back to me about that but I’ve told him I’m willing to sign a new contract because I like the place.”
Villa are understood to want O’Leary to put pen to paper until the summer of 2008 after transforming the club’s fortunes since replacing Graham Taylor in May 2003.
O’Leary’s demand for assurances that money will be available for team rebuilding rather than his own financial concerns will be the main stumbling block.
He has often stated the need to bring in a further four players to bolster one of the smallest squads in the Premiership after last season undertaking a massive cost-cutting exercise with 15 players being offloaded.