Former Wales midfielder Owain Tudur Jones says the national side will be given a boost going into Euro 2016 if, as expected, manager Chris Coleman signs a new contract.
He is set to be rewarded with a two-year extension until after the 2018 World Cup after guiding Wales to a first finals since the 1958 World Cup.
The Football Association of Wales are expected to announce the 45-year-old's improved contract on Monday.
"It is vitally important," said Jones.
"It will give a boost to the playing squad... Knowing that the manager is going to be the same guy going into the next campaign.
"It is important [and] it's nice that Chris Coleman has been rewarded for his hard work and the success that he has had in getting the team over to France for the Euros.
"It's a nice thought that both parties have been able to settle [negotiations]."
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Coleman, whose current deal ends after Euro 2016, became Wales boss in January 2012, replacing the late Gary Speed.
The former Wales defender has lost just one of his last 11 qualifiers and has won 12 of his 29 matches in all competitions in charge.
Former Wales managers Terry Yorath and Mark Hughes have already urged the FAW to secure his future before Euro 2016.
Wales begin their campaign against Slovakia on Saturday, 11 June before facing England in Lens and Russia in Toulouse in Group B.
Coleman takes his squad to the Algarve on 23 May and he will then have to decide which players to trim from his 29-man training squad.
"It's a tough time for a manager. The fact that he has to cut the squad from 29 to 23 is going to be heart-breaking for a handful of players," said Jones.
"But unfortunately that comes with the territory if you're the manager of a nation and a successful nation that reaches European Championships.
"These are the kind of things that come with the job.
"He won't enjoy that part but he'll know it's a necessary evil if you like in the preparation."
Wales' final 23-man squad for Euro 2016 will be announced on Tuesday, 31 May.
They face Sweden in Stockholm on Sunday, 5 June before their Championship opener in Bordeaux.
The Welsh team start their 2018 World Cup qualifying campaign in September when they host Moldova in Cardiff.
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