United star Martial has been toying with the idea of a new contract all season.
Old Trafford chiefs feared he could run down his deal after his agent revealed that he was looking to leave in the summer.
It came after the signing of Alexis Sanchez pushed him out of the side and problems with Jose Mourinho.
The Portuguese coach did not get on well with the Frenchman, frequently omitting him from starting XIs and even fined him £180,000 for leaving a pre-season base early to be there for the birth of his child.
And with a year left on his deal, the decision was made to trigger a clause in his contract that extended it by a year.
That decision was taken the day before United sacked Mourinho, and since then the former Monaco man has been all smiles.
Ole Gunnar Solskjaer has arrived on an interim basis and has placed his trust in Martial, using him, Marcus Rashford and Jesse Lingard as his preferred attackers.
And the 23-year-old is prepared to extend his stay at Old Trafford as a result, according to the Metro.
Fresh talks were held with his representatives and it now appears that the forward will put pen to paper over a new five-year deal.
His current wage stands at around £115,000-a-week before bonuses.
Starsport understands his new deal will see him pocket £150,000-a-week, after earlier rejecting an offer this season.
It will come as a major boost to the Red Devils, who will gain optimism that David de Gea will follow suit.
The Spaniard’s situation is similar to Martial’s in that they both have 18 months on their contracts.
De Gea is keen on staying at United, but wants pay parity with some of the high earners at the club such as Paul Pogba and Sanchez.