Deschamps, 54, led Les Bleus to the World Cup final on Sunday, where they lost in a penalty shoot-out to Argentina, after guiding them to the trophy four years ago.
Deschamps, who captained the 1998 France team to their first World Cup title, will meet with Le Graet in the north-west town of Guingamp next week to discuss extending the ex-Juventus midfielder's deal until Euro 2024.
"In my opinion, we will settle it in Guingamp," Le Graet told the newspaper Ouest-France. "If he doesn't want to stay, it will be short. If he wants to stay then there will be discussions that are a little longer."
"Didier has done his job well, I think we'll come to an agreement," he added.
France's next game is against the Netherlands in a Euro 2024 qualifier on March 24.