Massimiliano Allegri is set to extend his contract as coach of Italian champions AC Milan to 2014, the club's chief executive Adriano Galliani announced on Monday.
Galliani, who also raised the possibility of signing Manchester City's out of favour Argentinian striker Carlos Tevez and Fiorentina captain Riccardo Montolivo in the upcoming transfer window, said that it had been in the pipeline for a while.
"With Allegri there is no problem," said Galliani.
"There was already an agreement that he should extend (from 2012) to 2014, we just hadn't had the time to sign it, but the agreement exists and he will stay with us."
Galliani, who was talking on the sidelines of the first edition of Italian football's "Hall of Fame" in Florence, said he didn't want to make too much of links between the club and Tevez, who has been frozen out of City's plans since refusing to go on during the Champions League match with Bayern Munich.
"The English club permitted us to speak with his agent (Kia Joorabchian)," said Galliani.
"I prefer not to speak too much about Tevez, because then the price will go up, and that is not a good thing."
Even before his refusal to go on during the Bayern match Tevez had been a bit-part player for City this season after being stripped of the captaincy when he made trouble during the summer after handing in a transfer request.
However, Milan see him as an ideal replacement for Antonio Cassano, who suffered a cerebral problem related to an ischaemic stroke in ealry November.