Neymar wants to pledge his future to Paris Saint-Germain, sources have told ESPN, but any agreement could depend on the club's progress in the Champions League.
PSG are optimistic about reaching agreement with the Brazil international but no decision will be taken before April or May with everything on hold for the time being and no deal on the table at the moment.
Nevertheless, after high tensions last summer due to Neymar's desire to return to Barcelona, the relationship between player and club is much better.
He is settled in the French capital both on and off the pitch and feels part of the club and of the city, sources added.
The 27-year-old has two-and-a-half years left on his contract and informal talks have already taken place between PSG sporting director Leonardo and Neymar's father.
Pini Zahavi, the super-agent who brokered the €222 million deal in 2017, is still very close to Leonardo and to PSG and will be important to any new deal.
Neymar has been in superb form this season since returning from injury and suspension, scoring in each of his last eight matches to equal a club record.
In total he has 13 goals and seven assists in 15 matches for PSG in all competitions.
The situation is similar for Kylian Mbappe. Unlike Neymar, he has an offer on the table to renew his contract but has not made a decision yet.
It is expected that Real Madrid will try to recruit him in the summer but PSG hope to keep him for at least another season, especially if he signs a new deal.