The Scottish defender has spent the last seven years with the Bluebirds - making him the club's longest-serving player - and is ready to prolong that association.
He was snapped up from Aberdeen in 2006 and has been a regular throughout his time in South Wales.
McNaughton has made well over 250 appearances for Cardiff and helped them to the Championship title in 2012/13 and promotion to the Premier League.
His current deal was due to expire this summer, meaning he could have dropped into the free agent pool.
Cardiff have, however, admitted to offering fresh terms to the 30-year-old full-back, and it is understood that an agreement has been reached.