Ryanair chief Michael O’Leary has extended his contract with the budget airline in a deal which could put him in line for a €153million (£133million) pay day.

Under the deal, the 65-year-old will be granted lucrative share options subject to him remaining at the group until April 2032 and if annual profit reaches €4billion - or if the share price exceeds €42 for 28 successive days

‘Achievement of these very ambitious targets would create substantial additional value for all Ryanair shareholders,’ the airline said in a statement.

O’Leary has been the dominant force at the airline since taking over as chief executive in 1994, transforming it from a small regional carrier to Europe’s largest by passenger numbers.

Ryanair last month posted a record full-year post-tax profit of €2.26billion. Its share price closed at €25.72 yesterday.

A previous share option scheme is set to earn him as much as €100million after Ryanair hit a share price target in his last contract. O’Leary has said the payout would be good value compared to the salaries of football stars.

The airline said O’Leary’s remuneration, comprising a ‘modest annual salary and a capped annual bonus’, will be tabled at September’s annual general meeting for shareholder approval.