The England captain has reportedly agreed to the salary and length of the proposed deal, with the paperwork now in the hands of lawyers for final checks and approval.
According to reports from Michael Bridge of Sky Sports, Kane has given the green light to the extension, with both parties hoping to complete the formal signing as soon as possible.
The agreement would keep the 33-year-old at the Allianz Arena for another two seasons beyond his current contract, which is due to expire in June 2027.
It would also provide a significant boost for Bayern, who have made retaining their star striker a priority following his remarkable impact since arriving from Tottenham Hotspur in 2023.
Kane set to commit his future to Bayern
Kane has made little secret of his happiness in Germany, with negotiations over a new deal progressing positively in recent months.
“Talks are going well. I've been quite open and honest about that,” Kane said.
“We are still in talks now and I think they are progressing in the right way. Both sides have been very relaxed about it.”
He also expressed his hope that an agreement would be reached soon, suggesting that the decision would be a positive one.
Those comments now appear to have been followed by a major breakthrough, with the principal terms of the proposed extension reportedly settled.
Although the deal has not yet been formally signed, the latest developments suggest Kane is increasingly likely to continue his career in Munich.
Kane's remarkable Bayern Munich record
Since joining Bayern from Tottenham in the summer of 2023, Kane has established himself as one of the most prolific forwards in European football.
The England captain has also continued to collect individual honours, having quickly adapted to life in Germany after spending his entire senior club career in English football before the move.
His goalscoring record has made him central to Bayern's ambitions in both domestic and European competition, while his influence extends beyond his performances in front of goal.
Keeping Kane would give head coach Vincent Kompany continuity in attack and help Bayern maintain their position among Europe's leading clubs.
What does the new deal mean for Kane's future?
A contract running until June 2029 would keep Kane at Bayern until he is 36.
The extension would represent a major commitment from both player and club, particularly given Kane's age and the length of the proposed agreement.
It would also reduce uncertainty around his future, with the striker previously linked with other major European clubs, including Barcelona.
For Bayern, securing Kane's signature would remove one of the biggest questions surrounding their long-term plans and ensure their leading goalscorer remains at the heart of the project.
For Kane, the move would offer the opportunity to continue building on the success he has enjoyed since leaving the Premier League.
When will Kane sign his new Bayern contract?
The proposed extension is not yet official.
The salary, contract length and principal terms are reportedly agreed, but the documents must still complete the legal review process before the deal can be signed.
Both sides are understood to want the formalities completed as soon as possible.
Until the paperwork is approved and signed, the agreement remains one in principle rather than a completed contract.
However, with Kane having reportedly given his approval, Bayern appear close to securing the England captain's future until 2029.
