The Norwegian, first appointed by the Red Devils temporarily in December 2018, is currently contracted until 2022.
And while he is yet to win a trophy, club chiefs are convinced that he is the right man for the long-term.
Solskjaer to sign new deal at United
According to The Mirror, he will be handed a new three-year deal, even if they fail to win the Europa League this season.
The 48-year-old is also set for a significant £2.5m rise on his current £7.5m-a-year salary.
When recently asked about earning a new contract, Solskjaer told Norwegian outlet VG that he had not thought about it and there had been no discussions in that direction.
Solskjaer stabilised the club after the chaotic finish to Jose Mourinho’s Old Trafford tenure.
And last season, he built on that good work, coming third in the Premier League while reaching the semi-finals of both domestic cups and the Europa League.