Brendan Rodgers says he has agreed the "framework" to extend his contract as Liverpool manager.
Rodgers is set to put pen to paper on a new deal once the title challengers have completed the season.
"I've obviously been in discussions with the club and there's the framework of a deal in place," said Rodgers.
"But I've always said it will be the end of the season. I want nothing to detract from what has been a great season for ourselves."
The new contract rewards Rodgers for transforming Liverpool into Manchester City's closest rivals for the Premier League title after finishing seventh last season.
Having let slip a 3-0 lead at Crystal Palace on Monday to draw 3-3, Liverpool now trail leaders Manchester City by two points going into the final game of the season.
Although Rodgers conceded the title in the aftermath of the Selhurst Park disappointment, he has since said: "We will fight to the end.
"We have had a remarkable season. The players have put Liverpool on the world map again.
"To finish second to the richest team in world sport shows the progress we have made."
Qualification for next season's Champions League, and the extra fixtures that will bring, is likely to make next season's title challenge harder.
Chelsea and Manchester United are also expected to spend heavily in the close season, but Rodgers believes Liverpool's improvement this season is the start of a new era of success.
"You guys are talking about us for the title - it is only the beginning," he said. "I hear that other teams will improve. We will improve dramatically."
Liverpool host Newcastle on the final day of the season and will welcome back midfielder Jordan Henderson, who has served a three-match ban after being sent off in the 3-2 victory over Manchester City at Anfield.
Since then, the Reds' title challenge has stumbled with a home defeat to Chelsea - after captain Steven Gerrard slipped to allow Demba Ba to score the opening goal - followed by the midweek disappointment at Selhurst Park.
"I think the game the other night was difficult," admitted Rodgers. "I have watched it three times since and I am still in shock that we drew 3-3. To let that go with 12 minutes to go should not happen.
"But it is clear we can deal with the pressure. Steven slipped in the Chelsea game, which can happen to anyone. You can't think about what could have happened. You can only focus on what can happen."
City also have a key player returning for their game against West Ham, with Sergio Aguero having recovered from the groin injury which forced him to miss the victory against Aston Villa.
Following that nervous victory, when City were held for 64 minutes before securing a 4-0 victory, manager Manuel Pellegrini now expects them to wrap up their second title in three years without further mishaps.
"I expect to win," he said. "We are thinking not of winning one point, but just winning the match and the best way to do it is to play the way we always do."
Since replacing Roberto Mancini as Manchester City's manager at the start of the season, Pellegrini has already won the Capital One Cup but the title was always his main objective.
"When I arrived here, my target was always to play well and try to win the title," he added.
"It is difficult to do it but the moment I accepted the job it is because I had a lot of trust I could do it."