Southampton boss Ronald Koeman is reportedly set to reject Everton and sign a new two-year deal with the Saints after replacing his agent, according to the Mirror.
The Dutchman had been heavily linked with a move to Goodison Park after stalling on signing a new deal, but after replacing Guido Albers with Rob Hansen as his new agent, reports have suggested the latter is working on a new deal for the 53-year-old to remain at the St. Mary's till 2018.
There had been significant fears from the Southampton board that the former Barcelona assistant would walk as a free agent next summer when his contract expired.
But it is now understood the Dutchman will sign a new deal with an expected pay rise- going from a reported £2m per annum to £2.5m.
The 53-year-old has guided the Saints to their highest points totals in both of his seasons at the South Coast and their efforts this season have been rewarded with another season in Europe.
But there had been reports the Dutchman was concerned with the club's ambitions regarding the board's willingness to keep hold of key players after seeing the likes of Morgan Schneiderlin and Luke Shaw depart to Manchester United.
He also wants the club to reassure him they will sign top class players to help the club continue their upward curve in the Premier League before he commits.
The 53-year-old remains Everton's first choice to succeed Roberto Martinez in the Goodison Park dugout, while it is understood Arsenal are keeping tabs on the Dutchman to be Arsene Wenger's long-term replacement when the Frenchman decides to leave.
But Southampton's director of football Les Reed has perhaps put a stop to those rumours with his latest details on the development of Koeman's contract extension.
He said: "We're getting down to the detail of the contract, which is where agents and lawyers get involved.
"Everything's going very positively at the moment."?