As reported by Sky Sports, the 18-year-old has been offered an extension by PSV, who are desperate to keep one of the Eredivisie's best players at the club.
But Arsenal and Liverpool are lurking as the contract saga rumbles on. Bakkali is yet to sign the tabled proposal, and reports suggest he's waiting for an offer from abroad before deciding.
His current PSV contract expires in the summer of 2015, so PSV would have to sell this summer to receive maximum value if he does decide to reject the offer on the table.
And PSV technical director Marcel Brands has told the youngster via the press that he's not getting a better offer than the one as it currently stands.
"We have done all that we can," Brands said to Voetbal International. "We have given him a good proposal and showed him a good view on the future. We won't do anything more. It is yes or no."
Arsenal and Liverpool both have good reputations when it comes to youth development and giving youngsters a chance in the first-team.
Bakkali, who has already been called up to Belgium's senior international team, is rated as one of the best young attacking midfielders in Europe and Arsenal and Liverpool scouts have been keeping tabs through the campaign.