• Manager likely to sign contract after final game of season • Praises club's owners for the faith they have shown in him

Brendan Rodgers has agreed in principle a new contract with Liverpool's owner, Fenway Sports Group, that is expected to tie him to Anfield until 2018.

The 41-year-old signed a three-year deal with the option for a fourth when he replaced Kenny Dalglish as manager in 2012, the option belonging to FSG, which has to inform Rodgers by a specified date next season whether it wishes to extend his tenure into a fourth year.

That decision has been made straight-forward by Rodgers' remarkable impact. He has guided Liverpool from seventh place last season to their strongest title challenge for 24 years in his second season in charge, removing several high earners from the wage bill in the process. But he delayed contract talks to avoid potential distractions from the pre-season objective of qualifying for the Champions League.

It is understood, however, that the framework of a new four-year deal has been agreed between the Liverpool manager and the club's owners in Boston. The fine print of the contract has not been finalised but it could be signed shortly after the end of the Premier League season on Sunday, when Liverpool host Newcastle United still with a chance of winning their first title since 1990 despite a damaging 3-3 draw at Crystal Palace on Monday.

Rodgers conceded the title to Manchester City following the late collapse at Selhurst Park but, speaking at the club's first end of season awards night at ACC Liverpool on Tuesday, confirmed he has not given up hope of another twist.

"The players have been incredible and they have allowed the supporters to dream," he said. "To be the club that is top of the league by one point with one week to go, and you never know what might happen, has taken a huge effort. The only thing I will promise is that while I am here we'll fight for our lives. Our season doesn't finish until after Newcastle."

He added: "I would also like to thank the owners and the executive team for what they have done for me since I have been here. They brought a young manager of 39 into one of the biggest clubs in the world and gave me the chance to develop the vision of football that I have. If it wasn't for their faith in me I probably wouldn't be here given the pressures of modern football."