"Hiddink has proposed a plan for the development of soccer in Russia. Taking this in account, the terms of his contract will be improved," said Sergei Kapkov, the chairman of the National Football Academy and vice-president of the Russian Football Union.
The National Football Academy was set up by Russian tycoon Roman Abramovich.
Kapkov said that Hiddink's new contract would see him earn more than his compatriot Dick Advocaat, the trainer of Russian champions, Zenit St. Petersburg. Advocaat is thought to earn around $4.5 million a year.
He also said that the National Football Academy would pay the bulk of Hiddink's salary.
Hiddink announced on Wednesday that he would sign a new contract in "the next 10 days," adding that he enjoyed working in Russia, and that he wanted to assist in the further development of the sport in the largest country on earth.
His previous contract expired on July 14.
Hiddink led Russia to joint third place at Euro 2008, and has been credited with inspiring a soccer revival in Russia. Pre-Hiddink, Russia had failed to get out of their group at every major tournament they had qualified for.