Schalke chairman Clemens Toennies is ready to offer Spanish veteran forward Raul a one-year extension, he told Sport Bild in an interview published on Wednesday.
"When somebody plays good football, adapts, identifies with the club then there is no reason not to continue with him. We are proud of every minute we see voit Raul playing in Schalke's colours," Toennies said.
"Financially, we can allow ourselves to have Raul on board," he said, while adding that he would leave tactical decisions to manager Horst Heldt and coach Ralf Rangnick".
Recent media reports had suggested Raul was not happy with Rangnick's tactic of playing him in a withdrawn role behind Dutch spearhead Klass-Jan Huntelaar.
The Spaniard, whose current contract expires at the end of the season, arrived in Germany last year after a trophy-laden 16 years with Real Madrid, with whom he won three European Cups.
Now 35, he is still a fine finisher and scored 19 goals last season, including six on the way to the Champions League semi-finals where the Royal Blues lost to Manchester United.
And Toennies believes the veteran of 800 league games is happy with his German challenge.
"We are a great club, with wonderful fans. He can't find that so easily elsewhere. Raul is not a mercenary and he is wholeheartedly with Schalke."