Skysports.com understand Newcastle are in talks with James Milner about a new deal at St James' Park.
Milner has been one of Newcastle's major successes this season after returning from a loan spell at Aston Villa last season.
The former Leeds man was close to a move to Villa in the summer before Newcastle pulled the plug on the deal.
Milner has established himself as a regular under Glenn Roeder this term and he has produced some impressive performances including scoring in the 2-2 draw with Manchester United on New Year's Day.
The talented winger has been linked with a move away from Tyneside to Middlesbrough, but it is believed Newcastle are ready to reward the England international with a contract extension.
Skysports.com understand Milner's representatives are locked in talks with Newcastle officials and are hopeful of reaching a successful conclusion soon.