England boss Gareth Southgate is set for talks with the FA over a new deal

Gareth Southgate is set for talks with the FA over a new deal after leading England to the World Cup semi-finals.

Southgate and the FA agreed a contract worth about £2.5 million a year, plus bonuses, to succeed Sam Allardyce in 2016. His current contract runs until summer 2020 but has a built-in break option after the World Cup.

A source close to the FA said: ‘Gareth is due a new contract and both sides want to get a deal agreed quickly.’

The option would have allowed the FA to replace Southgate on the cheap if he had failed to deliver on their expectations. But, after leading England to the nation’s best World Cup since 1990, Southgate is in a strong position and the FA are keen to tie him to a new deal.

It could be worth up to £5m a year, including bonuses, to Southgate and ensure he will lead the country through the 2020 European Championship and the Qatar World Cup in 2022. The FA are also set to thrash out a settlement to release them from a £6m image rights contract.

England players’ commercial work has been organised for the last decade by 1966 Entertainment, an outside agency whose contract runs until 2030.

Following the World Cup in Russia, the FA want to work directly with England players rather than having to go through a third party for all sponsorship matters.

A source close to the FA said: ‘It is in the interests of all parties to agree a deal, so we need to come to a figure which compensates 1966 for loss of revenues.

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