Southampton chairman Ralph Krueger says discussions are progressing over a new contract for manager Ronald Koeman.
Dutchman Koeman is out of contract at the Premier League club in the summer of 2017, but Krueger admitted there is no rush to reach a resolution.
"Philosophically, we're having very good discussions. We're not in any real hurry," he told BBC South Today.
"Those conversations with Ronald have been going in a very good direction. It will evolve as it should evolve."
Negotiations over a new deal for Koeman, who joined Southampton in the summer of 2014, are being lead by executive director Les Reed.
Speaking as the club signed a new kit deal with US sportswear firm Under Armour, Krueger said Leicester City's surge to the top of the Premier League was a "game-changing" moment for other clubs, including Saints.
"We're all excited for what Leicester are doing," he said. "But, most importantly, we believe that we can have a Leicester season as well in the future.
"We had a taste of that last season up until around January to February, it's truly changing the way the Premier League functions.
"We understand and respect how dangerous it is in either direction if you give up on the good things you do and if you stop trying to be better on a daily basis."