Schalke midfielder Ivan Rakitic is pleased with the progress of contract discussions at Veltins Arena amid reports linking him a move to Italy.
The Croatia international's current deal is set to expire in the summer and he has been rumoured to be a January target of Juventus, AC Milan and Napoli.
Rakitic, though, has been an integral part of Schalke manager Felix Magath's plans since last season and the player's agent said last week that he was not openly seeking a move.
Former Basel star Rakitic has now revealed that he has been holding meetings have been held with his club and he has been pleased with the developments.
The 22-year-old, who was once linked with Everton, told Reviersport newspaper: "Talks have taken place with manager Felix Magath.
"We have been having discussions and thus far everything looks really good."
Meanwhile, Rakitic could return from a bout of concussion in his club's UEFA Champions League match against Hapoel Tel-Aviv on Wednesday.
He said: "I have returned to fitness and I am able to take part in that match."