Paul Jewell admits Portsmouth have lodged a bid for Grant Leadbitter, but is confident Ipswich can tie him down on a new deal.
Town's captain will see his current contract expire at the end of the 2011/12 campaign.
The Championship club are keen to thrash out fresh terms and are planning to open discussions with the midfielder.
Jewell is hoping an extension can be put in place, with Pompey's approach having heightened the need to act quickly.
He is, however, prepared to admit that Leadbitter will have to be offloaded if a new contract cannot be agreed.
Ipswich lost David Norris and Gareth McAuley on free transfers this summer and they are keen to avoid suffering a similar fate next year.
"Grant's a terrific player and we're looking to sit down next week and get something done," Jewell told Town's official website.
"We want him to stay and I don't want us to get into the same situation as last year with David Norris and Gareth McAuley, with contracts hanging over us.
"Portsmouth have made an offer for him but I want him to stay and Grant isn't one to sulk. I think he wants to get something sorted too.
"I'm confident we can get something done. If he doesn't sign then we will have to look to sell him and I've told him that but we don't want that.
"The ideal scenario is to get him signed up to a longer deal. That is what we are aiming for."