The former Newcastle and West Ham manager believes Palace shares his ambitions.
“The reason I am talking to them about a new contract here is because I feel we could go forward,” he said.
“There is no point in me staying if I don’t have the ambition
“At this time of my career, I need to win trophies – that is probably the thing that you can hold against me as a manager, so I want to win trophies.”
“When I came here the most important thing was to go from the concept of a manager who was trying to stay in the division – which I think Neil Warnock’s mentality was – to a manager who wanted to finish higher than that,” the Eagles boss said.
“If you set your sights for the stars, you are going to fall a little bit less.
“The biggest difference I made here was changing the mentality of the players to make them think they could go and win.
“It’s quite an important role for a manger, to give belief. I take that as massive for this football club at the time. I think there was a lack of belief.
“I changed the dynamic of the players and the attitude of approaching games. To go and win games and not a ‘see how we go’ kind of attitude to try and stay in the game.”