Iwobi moved to Goodison Park from Arsenal in 2019 and will enter the final year of his contract next summer.
After initially struggling at the club, the 26-year-old has flourished under Lampard.
The Nigeria international has played every minute of Everton’s 10 games across all competitions this season.
The versatile winger has scored one goal and provided four assists.
Asked during Thursday’s press conference to confirm whether contract talks are ongoing, Lampard told reporters: “Yeah, I know that Kevin (Thelwell) is speaking with Alex’s people on that front so we’ll see how that one develops”.