Chambers's existing deal expires at the end of the current campaign, but the defender, who has started all 12 games for the Tractor Boys this season, has admitted that he is enjoying his time at the club.
The 29-year-old told BBC Radio Suffolk: "We're talking. Hopefully something can be agreed. I don't want to go anywhere. This is my most enjoyable spell as a professional.
"My family has settled down here, I love the boys, the gaffer has been brilliant and the fans have been fantastic."
Ipswich are currently in sixth place in the Championship table.