BVB confirm that the talented midfielder, who has scored once and made four assists so far this season, is on the verge of signing a new deal at Signal Iduna Park
The 21-year-old, whose current deal will expire in 2015, has scored one goal and provided four assists in three Bundesliga matches and one DFB-Pokal encounter so far this season.
Zorc, who is impressed by the youngster's abilities, confirmed that the club are in advanced negotiations with the player's agent over a new deal.
"We are currently in talks," the 50-year-old told Kicker.
"It's superb that he made a step forward in his development so quickly. In fact he didn't just take one but two steps forward."
Hofmann joined Jurgen Klopp's side from the Hoffenheim reserves in 2011 and has recently earned his first cap for the Germany Under-21s team under Horst Hrubesch.