The veteran striker, who turns 40 next month, is hopeful an agreement will be reached and he is confident he still has something to offer at the highest level.
He told Sky Sports News: "At the end of this week I will start ticking over and getting ready for pre-season, and hopefully that will be with Crystal Palace.
"We're in conversations with them. The chairman and the manager have been away on holiday and it is only really in the last few days that we have made contact, but I spoke to the gaffer a couple of days after the play-off final and he made it clear that he wanted me to stay.
"Hopefully we can get it sorted in the next week so that I can report back with the rest of the lads. It is an exciting season ahead and to be a part of that would be fantastic."