Manchester United this morning announced that they have planned negotiations with Sir Alex Ferguson over his contract and a future role with the club after next season.
United released a statement which read: "The board of Manchester United plc announces that it will be entering into negotiations this week with Sir Alex Ferguson and his advisors to agree a renumeration package which will enhance the terms of his current contract with Manchester United, which terminates on June 30th, 2002.
"A consultancy agreement between Manchester United and Sir Alex that will begin on July 1st, 2002, is also being negotiated."
Ferguson's future at Old Trafford had been thrown into doubt two weeks ago when he announced he would walk away from the club when he retired as manager next year.
Talks between Ferguson and the club appeared to have broken down over the nature of his role at the club beyond next season.
United had already offered him a new role as youth development manager, while he had also been touted as a possible worldwide ambassador for the Reds.
PA