United are to hand Brazilian midfielder Anderson a new Old Trafford contract to seal his return to form. The club are in talks with the 22-year-old's advisors over an agreement. Anderson signed a five-year United deal in 2007 when he joined the Reds for £18m from Porto and that contract expires in 2012. But both parties are keen to get a new deal signed and discussions are underway. Anderson has returned to form in recent weeks after injury and illness. He scored his first goal at Old Trafford on Tuesday night against Valencia in the 1-1 Champions League draw to add to his driving display against Blackburn Rovers. It is a return to the powerful early form he showed in his debut season at United. Resurgent Anderson is set to be a key figure in Monday night's Premier League blockbuster with Arsenal at Old Trafford. It was against the Gunners in his debut season at United that he earned himself his exclusive terrace song for his dominance of Arsenal midfielder Cesc Fabregas. Another trademark powerhouse effort against Liverpool's Steven Gerrard cemented his cult hero status with Reds fans. But the youngster's form plateaued and he lost some of his lustre with his one-time support. Last term he had two alleged fall-outs with manager Sir Alex Ferguson after being overlooked for selection and almost left for Lyon last January. But a trimmer-looking player has got his act together again and has now put down a marker in United's engine room. It has not gone unnoticed with United's hierarchy and the player is now in a much better bargaining position and a deal is expected to be in the offing.