The 40-year-old's current deal will expire at the end of the season, leading to suggestions that he would hang up his gloves in the summer.
However, he has insisted that he has no plans to retire as he sets his sights on representing his country in the 2014 World Cup in Brazil.
"I feel really good and don't think the age thing is hindering my performances in any way. I've had some initial discussions and the intentions are there at the club to keep me," Schwarzer told the Fulham Chronicle.
"But in what capacity we'll have to wait and see. I want to be playing each week - that's the key for me. I love playing and don't want to be No.2 anywhere. The World Cup is also a huge priority and the reality is if I am not playing I don't think it would be possible to be a part of the national team.
"I just want to be out there enjoying every minute - especially at this stage of my career. If that means I have to move on at the end of the season, then that's fine also. Let's just see how we go."
Schwarzer joined Fulham from Middlesbrough in 2008.