The new contract could be worth around £150,000-a-week to the Bulgarian forward, who is currently United’s leading scorer.
The 31-year-old’s current contract is reportedly worth about £100,000-a-week and is set to expire at the end of next season.
Berbatov’s agent, Emil Dantchev, held talks with United’s chief executive David Gill on Sunday.
United are ready to offer Berbatov a new deal that will keep him at Old Trafford until the summer of 2014.
