Bayern expect Ballack to stay on
Bayern Munich coach Felix Magath expects Germany captain Michael Ballack to agree a new contract.
Bayern this week withdrew the offer of a new deal made to Ballack, who is a free agent next summer and has been linked with Manchester United.
But Magath said: "I believe he's going to stay with us anyway."
The 29-year-old German international was expected to tell the club by the end of the month whether or not he was staying but he is still undecided.
But chairman Karl-Heinz Rummenigge earlier said: "We officially withdrew our offer.
"That doesn't necessarily mean he will leave but we will immediately sound out the market to look for a replacement."
Midfielder Ballack has also been linked with Real Madrid and both Milan clubs, and it is thought he could be sold by Bayern in the transfer window rather than let him leave for free at the end of the season.
Ballack has won two Bundesliga titles and two German Cups with Bayern Munich but has repeatedly said his major ambition is to win the Champions League.
Last week his agent Michael Becker said there was "absolutely no chance of him leaving in January" as "it would not make sense".
One of the reasons for this could be his enthusiasm for the Champions League, as he has already played for Bayern in this season's tournament so he would be ineligible to play for any other club in the tournament.
Ballack denies greed accusations
Michael Ballack has rejected suggestions that money is behind his refusal to sign a new contract with Bayern Munich.
The 29-year-old midfielder will be a free agent at the end of the season and can expect a large signing-on fee if he decides to leave Bayern.
"It's absolutely shameless to say that. The accusation is baseless," Ballack told Germany's Kicker magazine.
"I am just trying to leave all my options open."
On Wednesday, Bayern withdrew their offer of a new contract, although they are prepared to talk with Ballack again if he decides to stay.
The midfielder has admitted he wants to speak with other interested clubs, said to include Manchester United and Real Madrid, before signing a new deal.
"I like the city of Munich and Bayern are great but there are one or two other clubs that can compete with them and it would be a great challenge to play abroad," Ballack said.
"It's been a long time since an outfield player from Germany played at a top European club."
