German daily Bild and magazine Sport Bild claim the 29-year-old is set to join Thomas Mueller, Alphonso Davies and head coach Hansi Flick who have already committed to the defending Bundesliga champions.
With a year left on his original contract, Bild say a new deal has been agreed and Bayern will announce the length of Alcantara’s new contract “during the course of the week”.
The central midfielder and playmaker has scored 31 goals in 227 appearances for Bayern since joining from Barcelona in 2013.
Bundesliga matches halted in mid-March due to the coronavirus, but Bayern have been busy recently with Mueller and Flick committing until 2023, while Canadian teen Davies has signed until 2025.
More Bayern stars are expected to commit in the coming weeks with captain Manuel Neuer and David Alaba both negotiating new deals.
Manchester City’s Germany winger Leroy Sane is still reportedly top of Bayern’s wish list for next season.
Download our app and read this and other great stories on the move. Available for Android and iOS.