Chairman John Williams told Sky Sports that the board are keen for Hughes to pen a new contract after his succesful stint in charge.
"We have had some discussions and will carry on with those to bring it to fruition," he said.
It is expected that the contract will be a 12 month rolling one and that Hughes will sign before Rovers' trip to Fulham a week on Sunday.
Hughes has recently been tipped as the favourite to succeed Sir Alex Ferguson as Manchester United boss when the Scot finally retires.