Guti set for new contract.

Real Madrid have reportedy reached a verbal agreement with Guti to extend his contract at the Bernabeu.

The blond-haired midfielder signed a new five-year deal in 2003 and seems happy to spend his entire career with the capital club.

"If he wants, he will retire from football with us," commented president Ramon Calderon.

It is believed that discussions have taken place regarding fresh terms that will run until 2010, granting Guti a two-year extension.

Coach Fabio Capello suggested recently that he rates the player higher than his fellow Spain internationals Xabi Alonso and Cesc Fabregas.