Sportsmail revealed last month that the Barclays Premier League strugglers are ready to improve the terms Kean agreed in January even though he has won only six of 32 League games since succeeding Sam Allardyce.
Fresh speculation was dismissed by a spokesman for the club's Indian owners who said: 'There is no new contract signed yet.'
Point to make: Steve Kean's Blackburn side are languishing in the bottom three
However, it seems inevitable Kean is going to sign a deal that will increase his ?350,000-a-year salary and may also include the option of a 12-month extension beyond 2013.
That would cause widespread anger among those Blackburn fans who have been campaigning to oust Kean with series of protest marches and sit-in demonstrations this season.
On Saturday they even hired a plane to fly a 'Kean Out' banner over Ewood Park during the defeat to Chelsea.
Unrest: Angry Blackburn fans have been protesting against Kean's reign
Plane stupid: Rovers fans paid for an aircraft to fly past Ewood Park on Sunday trailing a 'Steve Kean out' sign after banners were banned from the ground
But Blackburn's owners have been encouraged by the positive feedback they have received from within the club in recent weeks, which has been reflected in a number of good performances on the pitch.
Last week officials met with the players who agreed there was a better atmosphere around the club and in training, particularly since Paul Clement arrived from Chelsea as Kean's assistant.
They decided it was the right decision to persevere with the 44-year-old Scot who has been holding meetings with agents this week as he prepares to make more new signings in the transfer window.
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