The 23-year-old, a youth product at Burnley, has been linked with a move to the Trotters this summer to reunite with former Clarets boss Owen Coyle.
But Howe is confident the club can negotiate a new deal with the Irish midfielder.
He told Burnley's official website: "We are in discussions with Chris and we are very hopeful that we can reach a positive conclusion.
"We are very keen for him to stay. He's a massive part of our plans going forward."
Howe also remains optimistic of signing former loanee and England Under-21 international Jack Cork from Chelsea.
He added: "Jack is away with England at the moment. We are talking to him, his representatives and to Chelsea and we will have to wait and see what happens."
Howe is yet to clinch his first signing of the summer but expects to delve into the transfer market before the window closes.
"The focus is on signings and players and has been for most of the summer," he added.
"We are on the hunt for players. We have identified players a long time ago and it's just a case of getting over the line with them.
"It's been quite a slow summer in terms of transfers. Most teams have been taking a watching brief but I'm sure once one starts they will all fall into place.
"I think there will be a lot of activity but it will probably be crammed into the end of June."
Source: Team Talk
Source: Team Talk