The 23 year olds deal is set to expire in the summer and with rumours of former boss Brendan Rodgers looking at the young centre-back, McDermott is keen to tie him down.
"We shall see what happens this week," he said. "There is a possibility that there will be talks between Alex, his representative and Nick Hammond. When I first made the decision to leave Alex out (his contract situation) had no bearing whatsoever.
"Alex has a choice to make and so does his agent. Sean Morrison is now in the team, proved a point and proved he can play at this level. He is very much in contention to play because we know he can do it. He's committed and has a three-year deal."