Manchester United want to keep Herrera at the club amid concerns Barcelona could swoop for the Spain international.
Herrera is said to be open to leaving Old Trafford if the La Liga giants come calling.
But the Daily Star Sunday claim United have drawn up a deal that will lock the player down until 2021.
According to the report, United are willing to pay Herrera £200,000 a week PLUS bonuses.
That would double his current wages on a contract he signed when joining from Bilbao in 2014.
Manchester United are set to hand Ander Herrera a £200,000-a-week contract
- Man Utd boss Jose Mourinho blocking Barcelona from Ander Herrera
- Man Utd place £60m price-tag on Herrera: No Barcelona approach yet
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The 27-year-old could therefore make a massive £41.6million from the length of the new contract.
United are flush with cash and have already spent £100m on two new players this summer.
Herrera is seen as the natural successor to veteran Michael Carrick in the heart of United’s midfield, with Carrick having extended his contract at Old Trafford for one more season.
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Ander Herrera (left) is wanted at Barcelona
Meanwhile, the Daily Star Sunday have revealed further details of United’s deal with Everton over Romelu Lukaku.
United coughed up £75m for the striker, with Wayne Rooney heading in the opposite direction for £10m.
But the Red Devils will have to pay a further £7.5m if they win the Premier League during the five-year length of Lukaku’s contract.
Another £7.5m will likely be due if Jose Mourinho’s side win the Champions League.