MIDDLESBROUGH will offer Martin O'Neill a £2.5m-a-year contract to become the club's next manager later today, but warn the in-demand Ulsterman they expect a decision within 48 hours.

Boro chairman Steve Gibson met O'Neill on Friday to discuss the vacant managerial position and, with Terry Venables having dropped out of the race on Friday night, the former Leicester and Celtic manager has become the club's preferred choice to succeed Steve McClaren.

Last week's talks, which were far more detailed than the preliminary discussions the pair held earlier this month, have persuaded the Middlesbrough hierarchy to put a formal offer on the table.

But, with prospective Sunderland chairman Niall Quinn also chasing O'Neill as he moves closer to completing his takeover at the Stadium of Light, the Teessiders are unwilling to let their own discussions drag on much longer.

O'Neill has been given a five-day deadline in which to make his decision, with former Charlton manager Alan Curbishley the only fallback option should Boro's preferred candidate choose to manage Sunderland instead.

Curbishley was part of Boro's original three-man shortlist - along with Venables and O'Neill - and, despite rumours linking Iain Dowie to the post, both Gibson and chief executive Keith Lamb have stuck to their initial triumvirate throughout the negotiating process.

However, with both Venables and O'Neill having been approached first, Curbishley would now take some winning over before he swallowed his pride and moved to the North-East.

Boro officials are hoping it does not come to that, with O'Neill's infectious enthusiasm having won them over during Friday's whistle-stop tour of the region.

The 54-year-old, who won three league titles, three Scottish Cups and a League Cup during his five years at Celtic and an English League Cup with Leicester, is keen to return to top-flight management after taking a year-long break from the game to care for his wife, Geraldine, as she battled against cancer.

He has previously spoken of his admiration for Boro's much-vaunted Academy system and is understood to have been impressed by Gibson's progressive plans to build on last season's run to the UEFA Cup final.

The Boro chairman is ready to make a substantial investment into the playing squad at the Riverside, and O'Neill is likely to be given a significant summer spending fund if he agrees to join.

However, he is also in demand on Wearside, with Quinn having discussed the possibility of him taking charge of first-team affairs at the Stadium of Light once the current takeover talks are completed.

Quinn's consortium, which has the backing of wealthy Irish property developers Sean Mulryne and Sean Dunne, is now approaching the end of the due diligence process that precedes a formal offer for Bob Murray's 56.8 per cent controlling stake in the Black Cats.

Once that is complete, Quinn will be free to make a formal approach to O'Neill and, while Sunderland's Championship status is a hurdle to be overcome, the Sunderland job is likely to appeal on both a personal and a professional level.

Personally, O'Neill would prefer to continue spending some time with his wife at their Berkshire home and, while Boro would demand his undivided attention, Quinn would be willing to let him live away from Wearside for a couple of days a week.

Professionally, the Northern Irishman would love to continue working alongside his long-term backroom staff of John Robertson and Steve Walford.

Gibson has already warned that he will not allow a radical reorganisation of Boro's current backroom set-up, with the likes of Steve Round, Dave Parnaby, Gareth Southgate and Colin Cooper all seen as integral parts of the coaching structure.

Quinn, on the other hand, would give O'Neill carte blanche to do whatever he wanted with the backroom staff at the Academy of Light.

O'Neill will spend the next 48 hours pondering his future, but Boro officials are expected to begin pressing him for an answer by the end of the week.

With the start of the new Premiership season less than three months away, the Teessiders know they cannot afford to wait much longer before they begin to put their own pre-season preparations in place.

Contract discussions and player scouting are continuing in the absence of a first-team boss and, significantly, former manager McClaren is continuing to have an input into the club's affairs.

Gibson remains close to England's next manager and is understood to have asked his opinion on a number of playing matters since he formally left the Riverside two weeks ago.

One loose end should be tied up later this week when George Boateng signs the new three-year contract he was offered towards the end of last season, while Boro have also been linked with a possible £3m swoop for Newcastle midfielder James Milner.

Boateng, who missed out on the Dutch squad for this summer's World Cup, had been interesting both PSV Eindhoven and Feyenoord in his homeland.

But, after another round of contract discussions, the 30-year-old midfielder is ready to extend his four-year association with Boro.

"It is correct that we are close," confirmed his representative, Sigi Lens. "We will look to conclude talks early (this) week. It is a three-year deal.

"It is a very good thing for George and hopefully we will get this sorted. There have been other clubs interested in him as well.