Eriksson agrees new England contract

England manager Sven Goran Eriksson is understood to have agreed in principle to a two-year contract extension following his verbal pledge to the FA to stay on beyond this summer.

The news follow renewed speculation linking Eriksson to the manager's job at Chelsea.

The FA were hoping to have Eriksson’s name on a new contract until 2008 by the time of a press conference today, even if lawyers were still being consulted over the finer details this morning.

This contract would not only secure Eriksson’s future until the 2008 European Championships but would also give him a pay rise in the meantime.