The extension of the deal is likely to be announced later this month, ahead of this summer's London Olympics.
The fast-food giant's current agreement with the International Olympic Committee (IOC) ends after London 2012. The new eight-year deal would extend the deal until 2020.
McDonald's sponsorship of the Olympics dates back to Montreal in 1976.
The extension of the deal would mean that McDonald's would sponsor the winter Olympics at Sochi in Russia in 2014, the 2016 summer Olympics in Brazil, and the 2018 games in Pyeongchange, South Korea, along with the 2020 games, for which Tokyo and Rome are among the bidders.
McDonald's is supporting the volunteer programme for London 2012 and has also announced plans to open the world's biggest McDonald's restaurant on the Olympic Stratford site.
Both McDonald's and the IOC were unavailable for comment.
Follow John Reynolds on Twitter
.jpg)
.jpg)