The 21-year-old hitman has been looked at by several clubs this summer after he scored 21 goals in Serie A in the previous campaign.
Liverpool have been keeping tabs on him as a potential attacking option, holding talks over a potential deal, and Tottenham are also interested as part of their plans to bring in a new forward this summer.
But there are clear indications that he could sign a new contract as Vlahovic is believed to be keen on staying at Fiorentina.
And according to Italian daily Gazzetta dello Sport, Fiorentina president Rocco Commisso is hoping to announce his new contract before the Serie A season starts next month.
The Serie A giants have been in talks with his representatives and there is a confidence that an agreement is imminent.
Fiorentina want to reward him with an increase in salary following his performance last season.
A new deal is also likely to end any talk of him leaving La Viola in the ongoing transfer window.
It would also allow Fiorentina more legroom in negotiations if a club show interest in the Serbian next season.