The 28-year-old, who joined the Championship side from Portsmouth in 2011, is one of 11 players who will be out of contract in the summer.
Nugent is confident that he will discuss new terms with the club in the near future.
"We have not talked yet but I am sure it will be coming soon. I have loved my time here, it's my third year and I want to stay longer," he told BBC Radio Leicester.
"In January the lads are allowed to talk to other clubs. But the 11 of us who are out of contract are a close-knit bunch and I wouldn't be surprised if every one of us wants to stay."
Nugent has scored 42 goals in 119 appearances for Leicester.