The 23-year-old forward was snapped up by Cardiff in 2011, as they lured him away from Plymouth Argyle.
He was an important part of their Championship plans, as promotion was secured under the guidance of Malky Mackay.
Mason was, however, allowed to spend the 2013/14 campaign back in the second tier on loan at Bolton Wanderers.
It is understood that Dougie Freedman is eager to agree a second deal, bringing the former Republic of Ireland U21 international back to the Reebok Stadium.
Cardiff boss Ole Gunnar Solskjaer has opened the door for talks to be held, but is keen to see Mason commit to fresh terms in South Wales before heading for the exits.
He said: “Joe has a big future with Cardiff City and we are having talks on a new contract.
“When they are concluded, Joe is likely to go out on loan.
“I want him playing first team football and continuing his development.”
Mason’s current contract is due to run until the summer of 2016.