Martin O'Neill will be offered a new, improved contract when he returns from the World Cup early next week, with Celtic determined to stave off the advances of Leeds United and retain his services.
O'Neill flew to Tokyo yesterday, where he will work for the BBC on the World Cup final, as Leeds set about preparing a package to make him the second highest paid manager in Britain, behind only Alex Ferguson.
Celtic's hierarchy last night insisted that O'Neill would not break his contract and are confident he will stay true to his word.
The Leeds board consider O'Neill far and away the best candidate. The club's plc will meet today to ratify a shortlist that also includes Mick McCarthy and Charlton's Alan Curbishley.
Peter Ridsdale, the Leeds chairman, has been encouraged by the noises emanating from O'Neill's camp and is willing to embark on what promises to be a long and messy struggle to prise him away from Celtic.
Yesterday, O'Leary claimed the club were trying to soil his reputation. In a clear reference to Ridsdale, he said: "I got the sack for reasons I can accept but where I will come out in anger is if spin is put on it that is wrong. There is one person at the club who is particularly good at spinning."
McCarthy has not been contacted by Leeds, but will be offered the job if O'Neill turns it down, whereas he would also be the logical choice for Celtic should they fail to persuade O'Neill his future lies in Scotland.
