The pair have been offered an extra 12 months at the club, but rumours in recent weeks have suggested that skipper Magilton may be set to leave Portman Road.
Speaking of the latest on the contract talks, Town boss Royle told the Official Club Website: "The indications are that Jim and Fabian will both sign.
"We are also hopeful that Dean McDonald and Jimmy Juan, on a season long loan, will also commit themselves to Ipswich Town."