Rafa Benitez held sit-down talks with Newcastle in London on Thursday as they attempt to come to agreement over a new contract.
The Spanish manager’s current Magpies deal ends on June 30, and there is a willingness on both sides to reach an agreement on new terms.
The former Real Madrid boss has admitted that discussions have progressed and that he was hopeful of a positive conclusion.
“We have been talking about that for a while. My answer is always the same. We will have a meeting, hopefully next week, and we will see where we are,” he said.
“I would like to stay. I can see the potential of this massive club and hopefully we can do things in the way that would be good for everyone to move forward.
“Maybe together, but at the moment we just keep talking and we will see what happens next week.”
Benitez is understood to want the tools for Newcastle to compete for a European qualification place and potentially lift a domestic trophy.
It is likely that talks between the parties will continue into Friday, after Newcastle finished 13th in the Premier League.