Hoffman, the Major League career saves leader with 554 saves, made $7.5 million last season. It's not known what type of contract the team will offer Hoffman, though a one-year deal with incentives and a club option might be a starting point.
After a rough start to the season, Hoffman finished strong. He converted 30 saves in 34 opportunities this season, which was the final year of a three-year, $21 million deal.
It was the 13th time Hoffman saved at least 30 games, extending his own Major League record.
"Well, I think I have more than one [season left]," Hoffman told MLB.com last month. "My body feels good. My arm feels a heck of a lot better than it has the last few years. The competitive juices are still there."
Towers would just as soon get Hoffman's contract resolved as it figures to be a busy offseason for the Padres. Towers said recently that he is listening to offers for all players on the roster, including 2007 Cy Young Award winner Jake Peavy.
Peavy's name has been mentioned as part of trade rumors, though Towers said last week that no deal was imminent.
Towers also said the team is still likely to pick up the $9 million option on veteran right fielder Brian Giles, though the team has until five days after the conclusion of the World Series to do so.
Giles, who turns 38 in January, finished seventh in the National League in hitting (.306) and sixth in on-base percentage (.398), and he also closed the season with his most hits (171) since 2004, when he had 173.
Giles reached base in 34 of the last 35 games of the regular season, and he hit .340 in August and .323 in September.
"This guy really makes our offense go, and he's the type of hitter we like to have, especially in this ballpark. Each and every day he plays hard, plays a hard right field," Towers said.