The 70-year-old Dutchman was appointed in October 2011, when he signed a two-year contract and there has been speculation that Baan would be leaving his post at the end of his term.
Baan told PTI from Goa, where he is undergoing a coaching course, that the discussions on his contract extension has been going on with the AIFF and the outcome could be "positive".
"The discussion on extension of my contract is going on now and it's not yet finalised. It will be done soon," he said.
The former Netherlands and Australia Technical Director suffered a stroke in July while conducting a coaching course in Mumbai and there were speculations that he would leave the job after his end term ends.
However, it seemed that the AIFF has managed to convince Baan to stay for one more year.
Baan was the author of the highly publicised Indian football masterplan 'Lakshya 2022', which aims at India qualifying for the 2022 FIFA World Cup.
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