The 30-year-old striker, who is out of contract in the summer, will reportedly receive a huge wage increase, earning £1.5 million per year.
Hemed has been the subject of major interest both inside and outside of England. Championship side Reading offered £9.5m for the Israeli in the summer and Chinese outfit Shanghai Shenua would be prepared to pay £5m for the player at the end of the season, so although the striker is over 30, it makes financial sense for the Seagulls not to leave him as a free agent. Hemed has made it clear he prefers to stay at Brighton.
The Israeli has also proven valuable on the pitch, scoring two Premier League goals before a stamp on Newcastle defender Deandre Yedlin, spotted by the Sky TV cameras, saw him suspended for three matches.
The incident cost Hemed a place in the Brighton starting line-up and although he is again available, manager Chris Hughton kept him on the bench for last Sunday's 1-1 draw with Southampton.