The club is set to offer the German playmaker an extra two years on his present contract, which is due to expire in June 2009.

Ballack, who joined Chelsea from Bayern Munich in the summer of 2006, earns 121,000 sterling pounds as a weekly wage.

The 31-year-old put in some impressive displays lately and scored decisive goals.

Ballack's brace helped Chelsea beat Manchester United 2-1 in the Premiership to revive their hopes of overtaking the Red Devils at the summit.

He also played a pivotal role in Chelsea's progress to the UEFA Champions League final, where they will face United on May 21st in Moscow.