The 31-year-old is in his final six months of his current deal with Amakhosi, but according to Mike Makaab of ProSport International, who represents the player, the two parties have started negotiations.
"We’ve just started," Makaab told Goal.
Makaab also confirmed that Chiefs expressed their desire to retain the former Getafe full-back despite his lack of game time under Steve Komphela this season.
He added that Masilela, like any other professional player, wants to play week in and week out, but he respects the coach's decision to play other players in his position.
"Professional players want as much game time as possible, but we have to respect the coach’s decision," he concluded.
Masilela fell down the pecking order at the start of the current campaign following the arrival of Sibusiso Khumalo from SuperSport United.
However, he has remained a true professional and intends to keep fighting for his place in the team.
The former Getafe full-back made only six appearances in all competitions in the first half of the season under the tutelage of Komphela, but it is his experience that Amakhosi will be banking on in the second round.
Masilela has had a successful four-year stint with the Glamour Boys, winning two PSL ttles, the Nedbank and the MTN8 crowns.