The Football Association of Wales has improved its offer to Chris Coleman to remain as Wales manager.
In March Coleman said he and the FAW were “apart” during initial talks, but progress has since been made.
Coleman’s deal ends after Euro 2016, the first major tournament Wales have qualified for since the 1958 World Cup.
The FAW declined to comment, but it is clear they want him to lead their bid to reach the 2018 World Cup finals in Russia.
The governing body hopes to settle Coleman’s future before the 45-year-old and his players head for France – via a 5 June friendly against Sweden – for their Euro 2016 campaign.
Wales start their Group B campaign against Slovakia on June 11 before facing England and Russia.
Coleman has indicated he wants to stay on for the World Cup campaign, though he also admits to have missed the day-to-day nature of club management.
He could also yet be a target for hometown club Swansea City if they decide not to retain head coach Francesco Guidolin for 2016-17.
Coleman has also been linked with the vacant manager’s job at Aston Villa.
Former Wales managers Terry Yorath and Mark Hughes have urged the FAW to secure Coleman’s future, a view backed up by full-back Chris Gunter.