The England ace's current deal runs out at the end of next season and he has been told by Toon owner Mike Ashley to take a pay cut on his current £100,000-a-week wages.
That left Newcastle fans fearing he would leave but the former Liverpool hitman said last night: "We've just opened contract talks, we are talking.
"I've got this season left regardless and we're working on a deal to stay longer.
"There'll probably be news in a month or two.
"This last year I played fully without hiccups to my knee. That's well behind me now.”