The Brazilian is widely regarded as one of the best stoppers in European football, with Barcelona believed to be interested in his services this summer.
However, Alves has claimed that a new deal at the Mestalla "is practically finalised".
"My renewal? We're on the right track, so much so that I can say that we have been in talks. The truth is, I have a very good relationship with the president, with Rufete, and we always speak clearly," he told Super Deporte.
"I don't want to say that it's likely, but it is very likely that I will remain at Valencia for a long, long time. That's the truth. We're in the final stretch, [the renewal] is practically finalised."
Alves has been with Valencia since 2011.