The American joined Tech 3 this year following his exit from the works Yamaha team and has scored 98 points in the first nine races of the season.
Last year he scored 124 in total.
Edwards admits he is delighted at Tech 3 and says a new deal is close.
"I'm extremely happy. Hopefully we can sort something out," Edwards told a news conference ahead of the German Grand Prix. "I think Herve (Poncharal, team boss) and Yamaha as well are keen to keep me.
"We have some terms that we need to discuss. I think it's looking good. This is what I want to do. I want to stay here. I have a good crew and a good crew chief."
He added: "It's been a good year. I think everybody's really happy at the moment in our team."
The Texan arrives in Sachsenring fresh from a podium finish in the last race in Assen, and he is in confident mood for the German event.
"Last year we ended up fourth. We had a good race two weeks ago and I come here and I know we have the bike sorted out, so I'm looking forward to it."
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