News of the World says United will frighten off Real Madrid by offering Ronaldo a deal that will see him earn £200,000-a-week.
Ronaldo still has three years left on his exisiting £120,000-a-week deal.
Reports from Spain have suggested that Ronaldo has a verbal agreement to join Real this summer, something United boss Sir Alex Ferguson denies.
Fergie said: “There is no question of Ronaldo leaving.”
And a Portuguese source close to the player added to News of the World: “Cristiano wants to clear his head of the Real Madrid move once and for all. When he agreed to stay at United last summer he thought it would be just for one more year.
“But now he seems to be setting his mind on the long term because he realises he can fulfil all his ambitions at Old Trafford.”
The new deal will see Ronaldo add another two years to his exisitng contract and keep him at Old Trafford until 2014.