The 26-year-old is out of contract at Molineux in the summer and Saunders admitted that the club had rejected offers from other teams to buy Ebanks-Blake during the January transfer window.
Saunders told the club's website: "We're talking about it now.
"We were just waiting for the window to shut and for things to calm down a bit and now we'll crack on.
"I think he wants to stay and sign - it's just down to agreeing the figures.
"He's always got the option of letting his contract run out which puts him in a position where no one has to pay a transfer fee for him, so he can command more money out of the whole package.
"But my plan was to turn down the money offered and give him a new contract and he bangs goals in for us for the next three years.
"It's hard to find goalscorers. It will cost you £2m unless they're getting on a bit or they're young like Chris Wood."
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