London, Jan 24 : Gary Lineker is set to sign a new BBC contract - after agreeing to take a 500,000-pound pay cut to continue as host of `Match of the Day'.

The deal would see his salary fall by around 30 percent to 1.5 million pounds a year, even though he will be heading coverage of the 2014 World Cup in Brazil, the Mirror reported.

His current contract expires at the end of this season and his representatives are said to be "confident" of agreeing an extension.

A BBC source confirmed that discussions were taking place.

However, Lineker also has a lucrative agreement to host Al Jazeera's Champions League coverage in midweek.

His 20-year association with Walkers Crisps, which runs until 2015, is one of the most successful and long-running TV advertising tie-ups. (ANI)