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"Kevin is under contract with Shrewsbury Town and that still has a year to run," he told the Shropshire Star.
"But as is widely known we are in the process of finalising a new three-year contract with Kevin.
"As far as we are concerned we are very happy with the job Kevin is doing and he is happy at Shrewsbury.
"He and the rest of his management team are doing an excellent job."
Ratcliffe took over from Jake King at Gay Meadow in November 1999.