Real Madrid are considering activating their purchase option to sign on-loan Manchester United striker Javier Hernandez.
Lukas Podolski wants to return to Arsenal when his loan expires at Inter Milan, according to manager Roberto Mancini.
The 48-year-old tactician has been rewarded for the positive impact he has had since taking over at El Madrigal in January.
He helped secure promotion to the Primera Division and they currently sit fourth in the top flight after 13 games.
The former Levante man has also coached the likes of Sevilla and Racing Santander, and will now remain with the Yellow Submarine until the summer of 2016 at least.