Peace has admitted that there is a 'willingness from both sides' to agree a new deal and Albion remain hopeful that the striker's future still remains with them.
Peace said in the Birmingham Mail: "It's a work in progress and we will get to a conclusion one way or the other.
"Either Kevin will go with our blessing to wherever he is going because we have had a very full negotiation, or Kevin will stay and everything is fine.
"It's a big world and Kevin can go if he wants to, but similarly he could stay and I think there is a willingness on both sides to progress it."