The 38-year-old World Cup winner has been in talks with the Sky Blues about activating the second year of his $2 million-a-season contract.
Sydney called a press conference for 2pm (AEDT), where it's expected they'll confirm a new deal has been agreed.
Del Piero has been a smash hit on and off the park in his first A-League season, scoring 11 goals in 18 appearances.
He has been linked with a possible move back to South America through contract negotiations.
The former Juventus striker has enjoyed a spectacular first season in the A-League with his 11 goals the highest-ever goal haul by a Sydney FC player in a single season.
He's also been a smash hit off the park, helping to generate greatly-increased media interest, crowds and television ratings.
Del Piero was reportedly a target of clubs in the US and Brazil but he has stated his desire to remain in Sydney, where his family have settled well.