Middlesbrough manager Gareth Southgate said the club has agreed a fee with Real Madrid for Jonathan Woodgate.
Woodgate impressed in Saturday's goalless draw at Bolton
The 26-year-old centre-half moved to Boro on a season-long loan in August with an option for a permanent deal.
"We have a fee agreed with Real Madrid. Now our job is to encourage him to stay with us," said Southgate.
"The fans have already shown how much they think of him. Now we have to prove we can give him what he wants and develop him as a player."
Woodgate impressed as Boro earned a goalless draw at Bolton on Saturday.
He has endured an injury-blighted spell with Real Madrid, playing just 13 games in his two-year spell.
Southgate added: "Jonathan has a presence that filters through the side.
"I sensed his desire immediately. It is great to have someone come from the club he has and set the example he does.
"I know he was disappointed not to prove himself over there. But he is still as good a centre-back as any around."
Woodgate admitted he was keeping an open mind on his future.
"I am definitely here for the year whatever happens and then we will see. Right now I don't know."