The highly-rated playmaker had appeared to be heading towards the exits at one stage, with clubs in England believed to be keen on acquiring his services.
McGowan has, however, been talked around and Saints boss Danny Lennon is optimistic regarding the chances of fresh terms being agreed.
He said in the Daily Record: "Things are looking promising and hopefully in the next 24 hours Paul will have committed himself to the club.
"It's great news because most St Mirren fans were resigned to losing him and I must admit I was resigned to losing him as well.
"But he called me two or three nights ago and we arranged a meeting that lasted a couple of hours.
"My assistant, Tommy Craig, was involved and it went very well. Paul told us he's committed to us and we're delighted to hear that.
"Everything has been done verbally and hopefully the positive news will be confirmed very soon."