Real Madrid are reportedly confident that Xabi Alonso will sign a new contract with the club.
The 32-year-old, who recently returned from a long-term injury, will be out of contract with Los Blancos at the end of the season.
Thus far, talks over a new deal have stalled, with a report claiming that the Spanish international wanted a signing-on fee of £8m to commit his long-term future to Madrid.
However, according to Goal.com, Madrid officials are confident that the former Liverpool playmaker will put pen to paper before the end of the year.
A number of European clubs are believed to be monitoring proceedings.