The Aston Villa left-back has spent the second half of the season at Newcastle United – and the club has a £15million buy option.
Howe will speak to 26-year-old Targett following the end of the club's campaign, which concludes with Sunday’s game at Burnley.
“I’ll be sitting down with all my players at the end of the season and discussing the future – and I’ll be doing the same with Matt,” said head coach Howe. “I think it’s only right we get the season out of the way first.
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"He’s been outstanding. I think the biggest compliment I can pay any loan player is that I view him as an integral member of the squad. His attitude, conduct, performances and consistency have been of the highest level. We really, really like him. I think he’s gelled really well with the squad and within the building. I can’t speak highly enough of him.”