The 33-year-old centre-back will become a free agent at the end of the season when his current deal with the Eagles runs out.
Warnock has given a hint that he could retain the services of Delaney beyond next summer.
"Damien has been really good and he is so good to have around," he told the South London Press. "I'm talking to him at the moment about his contract - it is not something that has not been mentioned.
"At the moment he is just getting on with playing and if he can sort something out then he will do."
Palace boss Warnock has also said that Paddy McCarthy could leave next week on loan.
The 31-year-old central defender has struggled for playing time for the Premier League outfit so far this season.
"The problem is you can only have seven substitutes and I like my forwards, I do," said Warnock.
"Paddy is like anybody else, he's very important to the club and I think the club recognises that. That's why they've given him a new contract.
"If I think he needs games, there have been one or two clubs who have asked me about him. We'll probably decide on that over the next week whether to loan him out for a few games."
Meanwhile, Warnock has insisted that 20-year-old midfielder Jonathan Williams will not be sold on a permanent basis.
The Wales international is currently on loan at Championship club Ipswich Town until January 2015.
"It was a great start for him on Tuesday and I texted him the morning after to say 'well done', but he came off injured afterwards," said the Palace boss.
"There were other clubs in for him but I want him to play in the hole and that's where he needs to be under Mick McCarthy.
"I've told Jonny there is no chance of him leaving Palace permanently and we can have him back after 28 days."