According to the Daily Mail, the contract offer will be close to £500,000-per-week.
It would be a huge increase on his current deal which stands at £290,000-per-week and would bring him in line with United's top earner, Alexis Sanchez.
Real Madrid have reportedly made an opening bid of £90 million for the 26-year-old, but they know it will take a lot more to prize him from Old Trafford.
Pogba's former club Juventus are also keeping tabs on the situation, but it's believed that he would rather play under Zinedine Zidane in Madrid.
The report claims that many of the Manchester United coaching staff are concerned by the club's move to keep Pogba.
They allegedly see him as a disruptive character when he's unhappy, and, despite him scoring 13 goals and assisting nine in the Premier League last season, would rather see him moved on.
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Quiz! Can you name the 25 most valuable players in the world aged 21 and under?
