Zola has built a positive team spirit at Upton Park this season and has got his side playing football 'the West Ham way' as they have risen to 7th place in the Premiership.
"The club is looking after us," he told the official site. "We are talking about a new contract and it is looking good so maybe in the next few weeks it will happen.
"It is good, the club has been very good to us and we appreciate that. I believe the club is going to improve and there will be stability.
"The situation will be better, but we have been through everything this year so we are not scared of anything."