McGrath, appointed in November 2013, guided Fermanagh to last year's All-Ireland quarter-finals where they were beaten by eventual champions Dublin.
The former Down All-Ireland winning boss told the Irish News that there is "a lot of potential within the squad".
"I'd be more than happy to stay on if they want me," added the Rostrevor man.
McGrath's ratification for a further season by the Fermanagh GAA board is expected to be a formality.
After a preliminary round win over Antrim in May, Fermanagh were beaten 2-12 to 0-11 by Donegal in the Ulster quarter-finals on June 12 after fading in the second half against the 2012 All-Ireland champions.
The Erne men defeated Wexford 0-19 to 1-11 in the opening round of the All-Ireland qualifiers but a harsh late penalty helped Mayo earn a 2-14 to 1-12 win at Castlebar on 9 July as McGrath's side exited from the series.
Pete McGrath has decided to stay on as Fermanagh football manager after mulling over his future following the controversial qualifier defeat by Mayo.