The 31-year-old midfielder's current deal is due to expire at the end of the season, leaving him free to discuss a move elsewhere.
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"I know that they're still in talks," he said. "It's clear that Steve would love to stay here. "He's doing very well here so I hope we come to a suitable solution."
Sidwell has spent the past three years at Fulham, having originally agreed a six-month deal in January 2011.
Prevous manager Martin Jol had revealed that discussions over a new deal for Sidwell had begun in October, though the club were only offering a one-year extension at the time while the Englishman was keen to secure a longer deal.
The combative midfielder has been one of the standout performers for the Premier League strugglers this season, scoring five goals in 22 top-flight appearances.