The 28-year-old has established himself in the Rangers team this season.
“I hope maybe something will be sorted out during the next couple of days,” admitted Papac.
“I think I will sign until 2011. I want to stay and it was good that Rangers came to ask about a two-year contract extension.
“It has all been going well and I’m enjoying my football so much at Rangers. But my main focus is on winning the league.
“I want to do my bit to make that happen. I have some great memories from here and reaching the Uefa Cup final last season was a highlight.
“But I want some new memories. I’m desperate to win the SPL – that would be a nice one.”