Royle agreed to replace John Sheridan as the Latics boss until the end of this season, but has now been handed the opportunity to remain in charge next term.
Chief executive Alan Hardy told the Oldham Chronicle: "We'd like to have a chat with Joe this weekend. The job's there if he's happy with the budget available for players.
"We had an open mind as to the future when he arrived here, as did Joe, but the players seem to like him and obviously the fans do. Even if he isn't here next season, hopefully he'll still offer us advice."