Hampshire manager Paul Terry is expected to agree a contract extension this week - and sign a second overseas player.

Terry is under contract until the end of the 2006 season, but is in talks that could see him stay for another two years at least.

The former Hampshire opener returned to the county as the replacement for Jimmy Cook at the start of the 2003 season.

And chairman Rod Bransgrove wants his partnership with Shane Warne to continue after the success of last year.

Warne has already agreed to commit his long-term future to Hampshire and Terry is close to doing so.

Bransgrove said: "Shane Warne and Paul Terry work very well together and we're close to securing Paul's long term future as well.

"There was some doubt because his family is based in Australia but we are close to coming to an agreement."

Meanwhile, Hampshire expect to name the Australian that will be playing alongside Warne very soon.

As previously exclusively reported in the Daily Echo, Aussie duo Matthew Hayden and Damien Martyn have turned down a move to the Rose Bowl.

Martyn's move fell through because of a disagreement between Hampshire and the 33-year-old's agent.

It would not be unlikely if Martyn came back into the equation but there are other options, including former Australia under 19 batsman Dominic Thornely, who has been recommended to Hampshire by Simon Katich.

The 27-year-old right hander enjoyed a short stint with Surrey last season, during which time he shone against Hampshire at the Rose Bowl.

He scored 73 from 90 balls as Surrey won by an innings and 55 runs and has an impressive first class average, having scored 2,022 runs at 50.54.