The attacker is close to a three-year extension to his contract, although the club hope to announce the news after they have completed the world-record signing of the Welshman
The 28-year-old's new and improved deal will make him the best-paid player in the Primera Division, earning €1m more per season than his Barcelona nemesis Lionel Messi.
Ronaldo, whose current contract runs until 2015, denied on Monday that his contract renewal is already a done deal, before hinting that there would soon be an update on his situation.
Despite reported interest from Manchester United and Monaco, Madrid sources are confident of final agreement but plan to announce the attacker's renewal after the conclusion of negotiations over Bale.
The Santiago Bernabeu side hope to land the 24-year-old Welshman this summer in a world-record deal worth up to €115m.
The capital club have already secured the services of Dani Carvajal, Casemiro, Isco and Asier Illarramendi in this transfer window, with the capture of Bale and Ronaldo's renewal representing the icing on the cake for los Blancos, who also brought in Carlo Ancelotti as coach to replace Jose Mourinho earlier this summer.
Ronaldo and Madrid had been close to agreeing terms since the middle of June, as revealed by Goal, and the last details have involved resolving a dispute over the player's image rights.
The Portugal international previously held a 60 per cent share (of which he pays a third to Jorge Mendes' company Gestifute), while the club kept 40 per cent.
The attacker joined Madrid from Manchester United in the summer of 2009 for a world-record fee of €94m and has since become the Liga side's undisputed star player.