A report from Football Insider suggests that the 47-year-old manager stands to secure an improved deal and a big pay rise should Leeds secure promotion to the top flight.
Despite a slow start, Farke has Leeds flying, with the club having won their last 7 league games.
They currently sit 2nd in the table, with a two point lead over 3rd placed Southampton and three points above Ipswich Town.
Securing a top-two finish ensures automatic promotion to the Premier League, while teams positioned third to sixth will compete in the promotion playoffs.
With Leeds, Southampton, and Ipswich Town separated by just three points in the battle for second place, the competition is intensifying as the season progresses.
But he might not be the only player to leave Leeds in the summer, especially if they lose their bid for promotion.
A 2-0 victory on Saturday put them into second place in the second tier.
Winger Wilfried Gnonto attracted interest from Everton last summer.
The Italian was understood to favour a return to the Premier League but a move did not materialise.
Gray has come up the ranks at Leeds United.
He was promoted to their first team last summer and has since gone from strength to strength.
When he was handed his first start of the season, no one expected him to become a mainstay in the team in his very first season.
The teenage midfield sensation has featured in a total of 34 matches, and he has even contributed towards two goals. 20 of his appearances have come as a right-back, while the rest have come in different roles in the centre of the park.