Hamburg's director of football, Dietmar Beiersdorfer, claims Nigel de Jong has verbally agreed a new deal with the club.
The proposed contract would keep the midfielder with the German giants until the summer of 2011.
The Holland international had been strongly linked with a move to Real Madrid in recent weeks, but has seen that interest wane.
Real opted to purchase Lassana Diarra from Portsmouth instead and are no longer interested in bolstering their midfield.
As a result, Beiersdorfer has revealed that an agreement which will keep De Jong at HSH Nordbank Arena for the foreseeable future is imminent.
"We have agreed terms," he said.
"All that's left to do is to sort out the paperwork."
Beiersdorfer also confirmed that talks have been opened with veteran defender Bastian Reinhardt.
The 33-year-old recently told the club that unless he was offered a new deal he wished to be made available on a free transfer.