Simeone has worked wonders since his arrival at the club last year, leading them to the Europa League, and they currently lie second in the Spanish league.
El Mundo Deportivo report that the Argentine is set to be offered a new deal during the winter break.
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Who of Europe’s top strikers will move to England this summer?
After a dreadful start to their Bundesliga campaign, Borussia Dortmund appear to have weathered the storm after going five matches without defeat.