Roberto Donadoni is edging closer to agreeing a contract extension with the Italian Football Federation before Euro 2008.
The Azzurri Coach had looked set to arrive at the tournament with his future up in the air.
Dons current deal will expire a fortnight after events in Austria and Switzerland and contract negotiations over a renewal have broken down on several occasions.
It has been reported that the FIGCs determination to insert a rescission clause that will see Donadoni replaced should Italy fail to reach the semi-finals this summer has prevented a deal being struck.
However, it seems that Don is rethinking his position and could accept an offer from President Giancarlo Abete this evening at a meeting in Rome.
The proposal is expected to involve extending the contract until 2010 with a wage increase from around £1.1m to £1.6m per year.
But Donadoni will have to accept the clause that allows Abete to axe him should he fail to impress this summer.
The former Livorno tactician is being encouraged by many to accept an extension because it could give the Italy side greater stability ahead of Euro 2008.