Atletico Madrid coach Diego Simeone expects to extend his contract with both parties eager to agree a deal.
The Argentine coach has led Atletico to second place in La Liga, and they are well clear of their major rivals Real Madrid in third, with Jose Mourinho's team dropping more points in a 0-0 draw at Osasuna on Saturday.
Simeone has enjoyed plenty of success since joining the capital-based club in December 2011, leading his side to fifth in La Liga, winning the Europa League and beating Chelsea in the Super Cup in 2012.
He told reporters: "I prefer not to comment on the issue of renewal because discussions are healthy right now.
"We are talking, and there is willingness on both sides to renew."
Simeone hopes Atletico can continue their recent form, as it would make it easier to retain their star players.
"To stay competitive you have to win, because winning gives you more economic stability and makes it easier to keep a competitive team," he said.