Bill Kenwright, the Everton chairman, has moved to allay concerns about David Moyes's future as manager by insisting that a new contract is in the pipeline. Moyes's present deal runs out in June next year, but Kenwright was insistent yesterday that discussions about an extension will begin soon.

Having sparked uncertainty about his position over the weekend when he revealed that talks had yet to begin, Moyes tried to clarify his comments after the 3-1 win at home to Portsmouth on Sunday that swept Everton back into fourth place in the Barclays Premier League, and is understood to be relaxed about the situation. Moyes and Kenwright are keen to ensure that negotiations do not distract from Everton's pursuit of success on the domestic and European fronts, although the matter will top the agenda at some point.

Moyes, 44, will celebrate six years in charge at Goodison Park next week and, having established himself as arguably Britain's outstanding young manager during that time, is aware of his worth. He is expected to receive about £3million a year from any new deal, which would put him among the league's highest earners, although he will also want assurances from Kenwright, with whom he enjoys one of the best manager-chairman relationships in the top flight, that there will be money to spend on players in the summer.

“The situation is exactly as David has indicated,” Kenwright, the West End theatre producer, said. “He and I simply have not had a moment to sit down and finalise his contract, although we have both acknowledged to each other on several occasions that we must - and we will.

“Our many daily conversations right now are about the last game we played, the next game and the next few weeks. This is one of the most exciting periods in our club's recent history and any mischievous reports that get in the way of that are not welcome.”

Everton travel to Florence tomorrow for the first leg of their Uefa Cup round-of-16 tie against Fiorentina on Thursday, buoyed by a victory over Portsmouth that kept them three points ahead of Liverpool. However, Liverpool will move back into fourth place by virtue of their superior goal difference if they win their game in hand against West Ham United at Anfield tomorrow, but Steven Pienaar is convinced that Everton can qualify for the Champions League ahead of their Merseyside rivals.

“We are definitely up for the challenge and I think you saw that [against Portsmouth],” the South Africa midfield player said. “The team that shows the most character will take the prize and there is a fantastic spirit running right through our team. The next ten league games are going to be vital for everyone at the club, but the Uefa Cup is also important to us, so there is a lot to play for in every game.”

Everton have defended Tim Cahill's controversial goal celebration against Portsmouth on Sunday. As he wheeled away in his elation at scoring Everton's second goal, the Australia midfield player crossed his wrists as if to show that he had been handcuffed and explained after the game that the gesture was a dedication to Sean, his older brother, who was jailed for six years in January for grievous body harm with intent.

“Goal celebrations are a personal matter and up to the player to decide,” Ian Ross, an Everton spokesman, said. “No one dictates what the player can do as long as he stays within the laws of the game and as long as it doesn't result in a caution.

“He is a very articulate young man and will have weighed up the pros and cons and decided to do it because it was a personal and emotional matter. I am sure Tim was fully aware that some people would not be in favour of what he did before he did it.”