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Northern Ireland manager Michael O'Neill has agreed terms for a lucrative new four-year contract after his side reached the Euro 2016 finals.

The Irish FA deal is said to be worth £500,000 a year and will run until the end of the next Euro qualifying series.

O'Neill, 46, appointed in December 2011, will become the highest-paid manager in Northern Ireland's history.

In June, Northern Ireland will play in the final stages of a major tournament for the first time since 1986.

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The contract extension, which will begin after Euro 2016, will include a release clause which would see the IFA being entitled to compensation if O'Neill was to be lured into club management.

Last October, O'Neill told ³ÉÈË¿ìÊÖ Sport his preference was for a four-year deal, rather than the IFA's usual two-year policy.

O'Neill's side won their qualifying group, finishing ahead of Romania and Hungary. The team won six and lost one of their 10 games.

They will face matches against Poland, Ukraine and Germany at the finals in France, with the first match on 12 June.

O'Neill became Northern Ireland manager in December 2011 after taking League of Ireland club Shamrock Rovers to the Europa League group stages.

In December, the former international midfielder was named coach of the year at the ³ÉÈË¿ìÊÖ Sports Personality of the Year ceremony.