Swansea City are "making progress" in negotiations with Daniel James as they look to tie the in-demand winger to a vastly improved contract.
James, 21, came close to joining Leeds United in January only for Swansea to pull out of the transfer.
The Welsh club hope James, who is contracted until the summer of 2020, will sign a deal which would reflect his talent and potential.
"There's progress but nothing to report apart from that," Potter explained.
"My thing with Dan is quite consistent. He hasn't indicated anything other than he wants to be here, he wants to play and improve, and it is my responsibility to help him do that.
"The rest is a process we will have to do behind the scenes.
"You have to find a solution for everybody and that's where we are at.
"Progress is being made, as with a lot of other players. We have those conversations and when we have something to announce, we will announce it."
Striker Oli McBurnie agreed an improved contract last summer and the Swans want to offer James a similar package.
James's agent, David Manasseh, criticised the club after his proposed move to Leeds fell through in the final hours of the January transfer window.
But the one-cap international, who scored a memorable FA Cup goal against Brentford last weekend, has indicated that he would be interested in signing an extended Swansea contract.
James's current deal was agreed in November 2017, when he was yet to play a senior game.
As a result, he is believed to be one of the lower earners in Graham Potter's squad - but a fresh agreement would change that.
Swansea's highest-paid players are on contracts which were dished out when the club were in the Premier League.
James, though, could secure one of the biggest deals sanctioned by the club since their relegation from the top flight last season.
Should terms be agreed, James would be rewarded for the impact he has made in 24 club appearances in 2018-19, while Swansea would be in a much stronger position should there be interest in the former Hull City youngster this summer.
"I have said before I have no concerns with his temperament and how he sees the situation," Potter added.
"I think he had a fantastic impact in the game - his quality was there for everybody to see - but then he comes in as if nothing has happened and gets on with it. He is one of the boys and wants to help the team.
"He is getting better all the time. That's pleasing."