Cannavaro has been linked with a return to his hometown Naples and Napoli in recent months.
“I want to renew my contract with Real Madrid,” Cannavaro told Spanish newspaper AS.
“I’m very settled and I expect to talk to the club to resolve everything before the end of the year.
“I don’t want to leave because I am happy here and my family is enjoying life in Madrid.
“I want to win the Champions League with this team and only then could I leave calmly.”