The 21-year-old Chelsea midfielder is on loan with the League Two club until January 3 but admits he would like to extend his stay at the Keepmoat Stadium.
"We are getting closer and hopefully it will be sorted in the next week or so," he told BBC Radio Sheffield.
"I am hoping to extend. I am still trying to sort out my contract at Chelsea, which is taking a bit longer, going through a few people.
"We are getting somewhere and hopefully within the next week we should get an answer and it will be sorted."
Houghton, who has appeared in 23 matches in all competitions for Darren Ferguson's side, was nominated for the SkyBet League Two Player of the Month for November after some strong performance for Doncaster.