By Chelsea correspondent Tony Hughes

Chelsea are prepared to hand Jose Mourinho a new contract and lay the foundations for him to build a dynasty, Football Insider sources understand.

The Londoners want to tie the Portugese to an extended deal now that he has steered the club to their first Premier League title in five years.

Mourinho’s current agreement has two years to run and negotiations will now begin on a new long-term contract.

The Portugese has made it clear that he wants to stay at Stamford Bridge and establish himself at a club in a way that he has not done previously in his managerial career.

Mourinho, who steered Porto, Inter Milan and Real Madrid to league titles either side of doing the same in two Chelsea spells, has never spent four consecutive seasons at the helm of a single club.

Mourinho’s first spell at Stamford Bridge was characterised by tensions with various facets of the club and it ended following a fall-out with owner Roman Abramovich.

But the relationship between the pair is said to be much improved and Abramovich is prepared to reward the manager with a pay rise and give him the licence to establish the west Londoners as one of Europe’s dominant clubs.

Speaking after the victory over Crystal Palace that clinched the fourth Premier League title of the Abramovich era, and the third under Mourinho, the Portugese said: “I stay here until Mr Abramovich wants me. The day he tells me to go, I go. He is the man who won every title at Chelsea – some players did some, others did others. Same with managers. Mr Abramovich won it all. If he has replicas, he needs a big house.”

In an interview earlier this year, Mourinho spoke of putting down roots at at Chelsea in a departure from the short-term spells that have characterised the rest of his career.

He said: “I’m not here thinking about my next move because I don’t want to have a next move. I will have a next move if and when Chelsea decides it’s time for that.

“I’m here to stay. I belong to Chelsea, Chelsea belong to me. I gave a lot to Chelsea in the past, but they also gave a lot to me.”