Bayern Munich coach Felix Magath expects Michael Ballack to sign a new contract with the club.

Ballack, whose current contract expries at the end of the season, saw a new offer from Bayern withdrawn earlier this week, prompting speculation that he might leave the club on a free transfer.

But Magath said: “I believe he’s going to stay with us anyway.”

The 29-year-old German international was expected to tell the club by the end of the month whether or not he was staying but he is still undecided.

Chairman Karl-Heinz Rummenigge said: “We officially withdrew our offer.

“That doesn’t necessarily mean he will leave but we will immediately sound out the market to look for a replacement.”

Ballack has been linked with Manchester United, Real Madrid and Internazionale, and it has been suggested that Bayern might sell hmi in January rather than see him leave for nothing next summer.

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