The McLaren team principal, Martin Whitmarsh, says Lewis Hamilton, 27, has told him he wants to sign a new contract with the team.
Hamilton's deal runs out at the end of this season and there has been talk that he might leave. But Whitmarsh insists talks are going well.
"If Lewis wants to stay in the team, which he has told me he does, then he should do," he said.
"Lewis and I have spoken two or three times at length. I think we are closer than we have ever been."