The German champions met the player's representatives last week, and discussions have remained positive, according to reports in Germany.
Sporting director Max Eberl confirmed Bayern's intention to keep the 30-year-old, who scored a crucial goal in the 3-1 win over Sporting Lisbon in the Champions League on 9 December. "We are in good and open talks," Eberl said, emphasising that both sides are working within the club's updated financial structure, which includes adjusted salary terms.
Gnabry, who enters the final six months of his current deal in January, has responded with the sort of form that Bayern fans feared might have slipped away. He has scored five goals and provided six assists in 19 matches across all competitions this season, showing the sharpness that once made him a standout performer during the club's 2020 Champions League triumph.
His overall record remains impressive: 98 goals and 67 assists in 304 appearances for Bayern. Speaking before the Sporting match, the Germany international remained calm about his situation. "I am very relaxed about it," Gnabry said. "The talks are positive and everything points to me staying in Munich."
Under Vincent Kompany, Bayern have rebuilt Gnabry's importance after a frustrating previous campaign. His pace, direct running and ability to unlock defences have helped the team stay firmly in the Bundesliga title race. With outside clubs able to make pre-contract approaches from January, Bayern have acted early, and the tone from both camp and club suggests that supporters may soon see their homegrown forward commit to a new chapter.
For now, all signs indicate momentum, and Bayern appear determined not to let one of their most dangerous wide players slip away.