The Ivory Coast international has made a big impact since arriving from Vitesse Arnhem for a club record fee of £12 million in 2013, and is currently tied with Michu on 20 as Swansea's top scorer since their return to the top flight.
Bony has frequently been linked with a move away from the Liberty Stadium, but could now prolong his stay in south Wales to 2018.
"Negotiations are going very well," he told the club's official website. "Hopefully things will be done this week.
"I have a great relationship with my team-mates, the staff and fans.
"It is a fantastic club and I am I am happy to be here.
"I am focused on Swansea and a one-year extension would be perfect for me."
Bony has scored four goals in 10 Premier League appearances for Swansea this season.
