Ollie Tanner, 21, has impressed under manager Erol Bulut, scoring his first senior goal in last weekend’s south Wales derby win over Swansea City.
Signed from non-league Lewes last summer, Tanner has a year left on his current deal but the Bluebirds are looking at extending his stay.
“Behind the scenes we are talking, as always,” said Cardiff chief executive Ken Choo.
“We will reach a deal with him.”
“He has shown he can be a great prospect in the last couple of weeks. There is a long-term plan and he has a long way to go, but from what we have seen so far we are happy.”
Tanner arrived in a deal thought to be worth around £50,000 after the former Arsenal academy player turned down interest from Premier League Tottenham.
He struggled to make an initial impact under then manager Steve Morison before a loan move to National League side York City.
He had been set for a further loan move this summer before impressing new manager Bulut, subsequently making five Championship appearances this term.
After an instant impact off the bench against Swansea, scoring within minutes of coming on and then winning the penalty for Aaron Ramsey to convert in the 2-0 victory, he started Tuesday’s 3-2 win over Coventry that put Cardiff into the top-half of the table for the first time this season.
Bulut said: “I said it at the start of the season, he is one of the players who scored more goals and assists in pre-season than anybody.
“He showed he could help us. He showed against Swansea and today he worked hard and I hope he continues like this.”