The long-running contract saga appeared to have hit a stumbling block when major shareholder John Magnier asked for negotiations to be suspended pending an inquiry into United's transfer dealings.
United announced on Monday that they would hold an internal review into their transfer policy but the club has moved ahead as planned with talks on what is believed to be a 12-month rolling contract for Ferguson, who has been manager of United since November, 1996.
The club has not publicly updated its position that "things are progressing" and although no signing was expected to be announced on Tuesday, it is believed Ferguson will put pen to paper before Saturday's game against Southampton.
The controversy over Ferguson's future at Old Trafford has been played
A new contract for Ferguson may dampen down speculation about his position for now, although until the transfer review has been completed and Ferguson and Magnier sort out their differences over Rock of Gibraltar it maybe an uneasy peace.
In the meantime Magnier and business colleague J.P. McManus, part of the Cubic Expression company which owns more than a quarter of United's shares, are believed to be happy that Ferguson is staying on without a long-term fixed contract.
Ferguson and United are both said to be pleased that a 12-month rolling deal will avoid the uncertainty that surrounded the club when Ferguson announced his intention to retire at the end of his previous contract in 2001, a decision he subsequently reversed.