Schalke are to hold contract talks with striker Raul in the next month with a view to agreeing a new deal.
The former Real Madrid star's current terms are set to expire in June 2012 and he has in the past been linked with a move away from the Bundesliga club.
Premier League side Blackburn showed interest in the summer, but Raul wanted to stay at Schalke.
The 34-year-old will now be invited to hold talks with Schalke, who he joined in the summer of 2009, regarding his future.
Club general manager Horst Heldt told spox.com: "We are to sit down in December, maybe just in January.
"We will have a look at the basic situation and decide how it will be going in the future.
"He is a leading figure of our squad and is giving his best all the time. It is usual that he can still improve. No-one is able to always bring out the very best performance.
"Anyway, we are extremely delighted about his mentality both on and off the pitch.
"He is a player that leads the squad and he is a person our supporters like very much. We absolutely know that."