The Chinese Super League club have offered former France forward Anelka a three-year contract, which includes a salary reportedly in excess of ?6million. West Ham are also said to be interested in the 32-year-old, but Shanghai assistant spokesperson Ma Yue believes agreement with Anelka's representatives is close.
He told Shanghai Daily: "It will be a three-year contract and will involve both football and commercial co-operation."
Club chairman Zhu Jun added: "We started to talk about every detail from the first minute of the negotiations.
"The whole contract is made up of details. It's comprehensive and complicated, involving the player's image and the commercial co-operation."
Anelka will be a free agent next summer and therefore able to sign a pre-contract agreement with a rival club in January.
He confirmed at the weekend that he already knew his next destination, suggesting a move to China was imminent.
As well as the riches on offer in the far east, there is the prospect of playing under former Fulham boss and fellow Frenchman Jean Tigana, who is said to be close to being confirmed as Shanghai Shenhua's new manager.
West Ham are also reportedly considering making a loan move, which would reunite Anelka with Sam Allardyce, who Anelka played under at Bolton.
Whatever the outcome, Anelka is set to spend the remainder of 2011 kicking his heels. He and Chelsea team-mate Alex were last week banished from Andre Villas-Boas' first-team squad after handing in transfer requests.
Source: PA
Source: PA