UPDATE 1-Audi CEO's contract to be extended to end of 2022 -sources

* Supervisory board to approve 3rd term for Stadler -sources

* Backing for CEO comes a day before shareholder meeting

* Audi declines comment (Adds more detail and background)

BERLIN, May 17 (Reuters) - Audi's Rupert Stadler will be given another five years as chief executive, sources said on Wednesday, as Volkswagen's luxury division seeks to demonstrate continuity ahead of its annual shareholder meeting.

Stadler, who has run Audi since 2007, has faced criticism for his handling of the emissions cheating scandal and the 54-year-old, along with fellow top executives, is expected to face questions from shareholders on Thursday about a March 15 raid by German prosecutors.

Audi's supervisory board will use a meeting scheduled for 1400 GMT to extend the CEO's contract through to the end of 2022, two sources close to VW group told Reuters.

Stadler's contract is due to expire at the end of this year.

Audi, which declined comment, admitted in November 2015 that its 3.0 litre V6 diesel engines were fitted with an auxiliary control device deemed illegal in the United States that allowed vehicles to evade U.S. emissions limits.

VW in December agreed to a $1 billion settlement to fix or buy back about 80,000 polluting diesel vehicles sold in the U.S (Reporting by Andreas Cremer; Editing by Harro ten Wolde and Alexander Smith)