The 24-year-old, who joined the German outfit in 2010, has struggled for consistency in recent seasons.
A number of European clubs have since been credited with an interest, but Kjaer has claimed that he "would be willing to sign" a new deal.
He told Ekstra Bladet: "It depends on our negotiations and how Wolfsburg see things. I certainly would be willing to sign. If they were to offer a new contract and could offer guarantees about playing an important part, it would be a possibility.
"Wolfsburg are a club who want to fight at the top of the table and have the resources to do that. The Bundesliga is a fantastic place to play football right now and it is not a bad place for me.
"I am happy to be at Wolfsburg and have declared that ever since the new coach was appointed."
Liverpool have been linked with his services.