The Swiss coach led the Foals from the brink of relegation to a place in the Champions League in just over a year, but he has yet to commit his future to the club.
That is not a cause of concern for Gladbach's vice-president Rainer Bonhof, though, who says negotiations are under way.
"His contract runs until 2013 and I don't believe he is in any rush," he said.
"We are in constant dialogue with him and we are very happy with Lucien Favre's work, which we have made clear.
"Things are progressing and there is no deadline on either side."
Favre has been linked with several other jobs, including Bayern Munich and Marseille, due to his achievements with Monchengladbach and beforehand with Hertha Berlin.
He almost took Berlin to the title in 2009, but was dismissed midway through the following season as they struggled at the wrong end of the table.
Bonhof has warned expectations should not be so high of Gladbach this year.
"Everybody saw where we ended up, but everybody also knows that we now want to stabilise ourselves between fifth and ninth place," he said in the Rheinische Post newspaper.
"Things worked really well last year and we caused surprises, but now we are in three competitions and it will not be easy."