Bale has been heavily linked with a move to the Bernabeu this northern summer with reports in Spain this week suggesting the player has already agreed terms on a six-year deal.
But, speaking at the Barclays Asia Trophy in Hong Kong, Villas-Boas was optimistic the 24-year-old, who is currently contracted until 2016, will extend his stay at White Hart Lane.
The Portuguese said: "There was contact between the club and his agent last year and there is ongoing contact between the club and his agent.
"We renewed his contract at the beginning of last season, if you remember, and it's something that is being dealt with by the chairman and the agent.
"Talks are ongoing but that doesn't mean there is an agreement. At the moment we're confident that the player is under contract at Tottenham, as was done last year.
"It's something that we're speaking about, but there aren't any developments."
