The 31-year-old actress portrays the titular role of Chicago marketing executive Emily Cooper in the Netflix comedy-drama - which is the creation of Sex and the City showrunner Darren Star - and it's believed she is close to a deal to return for a second Instalment.
It's claimed filming could start next spring when the Covid-19 lockdown is lifted, with the aim of having the new episodes ready to go for October.
An insider, who works with Netflix, told The Sun newspaper: "Emily in Paris is coming back. It has been a huge hit and become a talking point for the network worldwide. The show has brought such joy to people.
"A deal is all but signed off for Lily, who is keen to continue. She loved the character, script and the reaction from fans around the world. Things could not have gone better as they'd planned ideas for a second season.
"The hope is that they will film in spring if lockdowns are lifted to have the series ready by October."
Lily - who got engaged to Charlie McDowell in September - recently admitted she is hoping there will be another season of the hit show when discussing her next career move.
She said: "I am just keeping fingers crossed for a season two for Emily. I am enjoying being a fiancee.
"I am taking some time to really read and think about what is next for me. In the meantime, I'm embracing the exciting experience of being a fiancee and what all that means and just kind of sitting within that excitement."
The first series saw Emily move to Paris to work in her firm's French HQ without having learned the language, and she faces a number of obstacles in the workplace, no thanks to her troublemaker boss, Sylvie [Philippine Leroy-Beaulieu], and her love life.