Talks are ongoing between the music mogul and the channel as a new three-year contract is agreed upon.
It would secure both The X Factor and Britain's Got Talent until the end of 2019 at the very least.
According to the Daily Mirror, Simon is expected to see his £25 million fee over three years reduced with official confirmation of the new deal expected to be announced in the coming weeks.
Speaking to the newspaper from LA, Simon said he wasn't bothered about seeing his own pay reduced.
"We are all in that boat, aren’t we? That’s the way life goes," he's quoted as saying. “It is nothing I am particularly worried about, to be honest. I am more keen we settle the shows for the producers we hire and everyone else.
“We want to give everyone the reassurance that we are going to have another three years guaranteed, which is always nice news to tell the team because they have been with us a long time."
Simon concluded: "Overall I am happy. I always feel we are in a fortunate position because we have two shows that have been on air for a long, long time now."
While Britain's Got Talent continues to be on top form - becoming the most watched show of the year so far with more than 11 million viewers - The X Factor has had a tough time in recent series.
But Simon defended the show, saying that viewing figures "have held up incredibly well" compared to other channels and programmes.
He added: "Both shows have got passionate audiences, particularly X Factor. It also brings in younger viewers and the advertisers love it.”
BGT continues with its tenth series this Saturday night on ITV while The X Factor will be back for its thirteenth run in the autumn.