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Manchester United in talks with Jose Mourinho over new contract

Jose Mourinho appears deep in thoughtful during the Manchester derby

Manchester United are in talks with Jose Mourinho regarding a contract extension, Sky Sports News understands.

Mourinho is currently midway through the three-year contract he signed when succeeding Louis van Gaal in May 2016.

It is believed talks between Mourinho's agent, Jorge Mendes, and United began in October.

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LISTEN: Transfer Talk podcast

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United are currently second in the Premier League, 15 points behind leaders Manchester City, and have progressed through to the last 16 of the Champions League, where they will face Sevilla.

Mourinho has admitted United are finding it difficult to compete with City and Paris Saint-Germain in the transfer market and suggested his squad requires massive investment to enable them to compete with Europe's elite clubs.

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In October, he spoke glowingly about what is taking at PSG, who shattered the world transfer record last summer to sign Neymar from Barcelona for £198m and followed that up by agreeing a deal with Monaco for Kylian Mbappe worth £166m.

"At the moment in Paris there is something special. Magic, quality, youth - it's fantastic," Mourinho said.

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In the same interview with French television, Mourinho expressed a "desire to do new things" and said he does not intend to finish his career at United.

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