The Australia international has become a key player since joining the club from Millwall in a £1.5million deal in 2004.
Everton chief executive Robert Elstone is hopeful that Cahill will sign a new deal before the World Cup.
“We are at an advanced stage of negotiation with Tim and his representatives and we would be hopeful of concluding an extension to Tim’s current deal and put pen to paper on a new four-year contract before he departs for the World Cup,” Elstone told the club’s official website.
