The Republic of Ireland international has 18 months left on his current contract and City are keen to tie him down to a new long-term deal.
City boss Sven Goran Eriksson revealed talks are ongoing and he is hopeful the contract will be sorted soon.
"Contract talks are ongoing with Richard," said Eriksson. "It is not far away before he signs a new contract.
"He is very important for us as a captain and in the steadiness and quality of his performances."