The Bavarians' first offer for the Germany number one was a long way short of what Schalke are wanting for the 25-year-old, making Bayern chairman Karl-Heinz Rummenigge sceptical about a deal being reached.

However, Bayern are now believed to have offered around 21 million euros (£18.3million) for the Germany goalkeeper, who becomes a free agent next year. Last month's original offer was thought to be around 18 million euros (£15.7million).

Rummenigge and Bayern managing director Karl Hopfner recently met with Schalke directors Horst Heldt and Peter Peters and Rummenigge admitted to Bild newspaper: "We had a decent conversation."

The Bayern chairman confirmed yesterday the club would definitely be signing a new goalkeeper, with Mainz's Heinz Muller another reported target should they fail with a bid to land Neuer - who has also been linked with a move to Manchester United.

Meanwhile, Rummenigge and the club's deputy chief executive officer Karl Hopfner have today agreed new deals with the Bavarians.

Former Germany international striker Rummenigge, 55, has extended his deal with Bayern until the end of 2013, while 58-year-old Hopfner will be staying with the club until the end of next year.

Club president Uli Hoeness revealed today: "The board unanimously agreed to the contract extensions.

"We are pleased with the agreements, they ensure the successful work at the club will be continued. "