Lengthy and protracted contract negotiations between Alastair Clarkson and Hawthorn are virtually complete with the four-time premiership coach to remain at the club until the end of 2019 and potentially longer.

Clarkson's historic new three-year deal — his current contract takes him to the end of this season — is estimated at $4 million before performance bonuses and places him second only behind Kevin Sheedy in terms of modern day club-coach partnerships.

Done deal: New contract will see Clarkson stay at the Hawks until the end of 2019. Credit:Paul Jeffers

It is understood negotiations have been stalled in part over the details surrounding a trigger clause for a fourth season taking Clarkson through until the end of 2020. That fourth-year option could still be placed in the deal. The financial settlement sees the coach earning significantly less than he could elsewhere with the Hawks steadfast in refusing to exceed the AFL-imposed soft cap on football department spending.

Both parties have privately denied suggestions that the new Clarkson deal was worth $1.5 million annually. The annual figure is believed to be closer to $1.3 million.