Carrazzo, 29, will be a restricted free agent at the end of this season, but looms likely to sign a new deal early into the home-and-away premiership series.
Carrazzo and his manager Paul Connors launched formal contract talks late last month.
It is understood that only minor details are holding any confirmation of an extension for the tough on-baller who has played 154 senior Blues games since Carrazzo made his debut back in 2004.
“Our talks are well under way and I can say that everything is progressing very well,” Connors said.
Carrazzo is locked in a neck-and-neck tussle with fellow on-ball star Marc Murphy to be Carlton’s next full-time captain, after champion follower Chris Judd stepped down in January after five years as Blues skipper.
Murphy, 25, had been widely touted as Judd’s heir-apparent captain but a powerful summer program from Carrazzo has firmed his prospects of winning the appointment.
New coach Mick Malthouse is understood to have conducted a thorough assessment of all his required leadership credentials in his captaincy search since taking the Blues reins in November.
The decorated and veteran AFL coaching guru even floated prospects of tough defender Nick Duigan storming into calculations after his impressive summer training and NAB Cup series over the past month.
It seems most likely though that Malthouse and Blues management, after selection from senior football staff, will appoint either Carrazzo or Murphy as skipper.
Announcement of Carlton’s latest captain is tipped to take place at a potentially glittering Blues season launch in Melbourne on Wednesday.
Strong prospects of Carrazzo confirming a new Blues agreement early into the new season follows hard on the heels of reigning premiers Sydney swooping with re-signings for some big stars.
Highly decorated champion Adam Goodes, as well as hard-core follower Ryan O'Keefe and gun on-ballers Josh Kennedy and Kieren Jack all announced new contracts through early days of March.
Richmond is also understood to be about to initiate talks to probably retain stars Trent Cotchin, Jack Riewoldt and Dustin Martin.