Chelsea manager Jose Mourinho has been offered a new contract by the Premier League club.

"The negotiations are going well and nearing an end," his agent Jorge Mendes told Wednesday's Evening Standard. "It will be concluded very soon, maybe even on Thursday."

Mourinho, handed a two-match touchline ban after Chelsea were found guilty of bringing the game into disrepute in the first knockout round against Barcelona, will not be at Stamford Bridge for the Champions League tie against Bayern Munich later on Wednesday.

The Portuguese coach will instead watch the quarter-final first leg match on television.

Mourinho, whose existing contract with Chelsea was due to run out in 2007, has been offered a three-year extension worth 5.2 million pounds a year, according to the Evening Standard.

The new deal would earn him a pay rise of one million pounds a year, added the report.