Hughes helped Saints claw their way out of the relegation zone after joining in March until the end of the 2017/18 Premier League season, taking over from the beleaguered Mauricio Pellegrino.
With Saints grabbing eight points from their last five games under Hughes’ stewardship - which was ultimately the deciding factor in keeping Southampton afloat in the league - it’s thought the club’s board were pleased with Hughes’ performance as manager.
If true and signed, this three-year contract would keep Hughes, and most likely his now-popular backroom staff, at the club until 2021.
In his round of press last week, Saints chairman Ralph Krueger told Sky Sports News last week how Hughes dragged Southampton out of the “abyss” this season just gone.
”In February we realised we were in a relegation battle and that was an abyss that was daunting to look at for the first time in my time here,” Krueger said.
“Our players came together with our change of coaching with Mark Hughes and our staff stayed calm. The club has huge momentum moving forward now but we might have had a different conversation had we got one goal less than Swansea!
”We got it done. Overall I’m pleased with the finish, very disappointed with the season and extremely hungry to put all the lessons we learned this year into play.”