The Mestalla-based club and the young wing-back have long been in talks about a new deal and are seemingly nearing an agreement, with Barcelona closely monitoring his situation
The Spain international's current contract with Valencia is due to expire in the summer of 2013, and Barcelona are believed to be keen on luring Alba to Camp Nou at the end of the season.
Valencia are eager to hold on to the 22-year-old, and have been engaged in talks with Alba about a new deal.
Both parties met again on Tuesday to discuss a contract extension until 2015, and the player's representatives were satisfied with the outcome of the latest round of discussions.
"We are making progress. Talks are heading in the right direction," an InterStar Deporte spokesperson told Superdeporte.
Alba and Valencia are believed to have already reached an agreement on the length of his new contract, but are still negotiating the figures of the player's wages.