News Corp has reported that Edwards and Penrith officials are set to sit down with each other next week to discuss a new deal.
Expected to stay with the club, the contract will reportedly be worth around the $3 million mark.
Edwards has been a key member of the Panthers' successive Grand Final victories and earned the Clive Churchill Medal last season for his performance against the Parramatta Eels.
Establishing himself as one of the premium players in the competition, he has appeared in 12 games this season- scoring seven tries, providing four try assists and running on average 219 metres per game.
The club is also set to re-sign back-rower Scott Sorensen. Off-contract at the end of the season, Sorensen has recently been linked with rival clubs for next season.
However, according to News Corp, Sorensen is expected to remain at the club like Edwards and ink a contract extension relatively soon.
One of the most underrated players in the competition, he is a dual premiership winner coming off the interchange in the two previous Grand Finals.
The 30-year-old has played 11 games this season, with only three of those games starting as an interchange player. During these games, he has managed to make 321 tackles at an efficiency of 94.4 per cent, score three tries, have five line breaks and run an average of 97 metres per game.
The Panthers will take on the Sydney Roosters on Saturday night at Allianz Stadium in a blockbuster clash.