The 39-year-old bagged seven goals in 16 outings, including the play-off final winner, during a loan spell at Selhurst Park last season and is keen to remain at the club next term
The veteran, who turns 40 in July, spent the second half of last season on loan at Selhurst Park, scoring seven goals in 16 outings including the play-off final winner.
Palace co-chairman Steve Parish revealed on June 15 that plans were in place to extend Phillips' stay at the newly promoted side's, and the striker is positive an agreement will be reached following talks with the club hierarchy.
He told Sky Sports News: "At the end of this week I will start ticking over and getting ready for pre-season, and hopefully that will be with Crystal Palace.
"We're in conversations with them. The chairman and the manager have been away on holiday and it is only really in the last few days that we have made contact, but I spoke to the gaffer a couple of days after the play-off final and he made it clear that he wanted me to stay.
"Hopefully we can get it sorted in the next week so that I can report back with the rest of the lads. It is an exciting season ahead and to be a part of that would be fantastic."
An extension to his stay will hand Phillips the chance to eclipse Teddy Sheringham's record as the oldest outfield player and oldest scorer in Premier League history - achievements the 39-year-old admits have motivated him.
Sheringham was 40 years and 268 days old when he scored for West Ham against Portsmouth in December 2006 - with his last appearance in the league coming two days later - an age Phillips will surpass in the second half of next season.
"Physically I still feel fine. I can still do a job and the manager believes that as well," he continued. "If I can play in the Premier League next season, that would certainly be the time to call it a day. To finish at the top would be fantastic.
"There are a couple of records that I'd like to break still. I'd like to be the oldest Premier League scorer - I know Teddy Sheringham is at the moment but I've made it clear to him that I'd like to break his record."