Veteran Turkey midfielder Tugay has agreed a new one-year contract with Blackburn Rovers.
The 36-year-old has made over 230 appearances for the club since arriving at Ewood Park in a £1.3million transfer from Rangers six years ago.
Tugay's current deal was set to expire in the summer, but Rovers boss Mark Hughes has moved to retain his services for another 12 months after revealing his admiration for the player.
"We are in discussions with his people and I think we're very close to an agreement," Hughes said earlier in the month.
"He is an exceptional talent and we hope a deal can be finalised in the next couple of weeks or so.
"He has been out of the side recently but he knows the reasons why. There are some teams he is not suited to play against.
"But he has played a lot of games and has had an influence on most of them."
Meanwhile, Tugay is set to announce his international retirement after making his 94th and final appearance for Turkey in a friendly with Brazil in Germany on June 5.