Toffolo, 26, one of four core group leaders at the club, has made a positive impression since heading to the Terriers, with the club in talks with his representatives about extending his stint at the John Smith's Stadium. His current contract expires next summer with the club having the option of a further year's extension.
The ex-Norwich City player, who joined the club in January, 2020, said: "It is something I am very proud of and I am glad the club are doing it and it is an important step for myself and the club moving forward.
"When I signed here 18 months ago, it was a club where I thought: 'right, this could be home' and the people in Yorkshire have welcomed me with open arms and the kids are enjoying school and that is the most important thing for me, the family life as well."
Meanwhile, head coach Carlos Corberan has confirmed that Saturday's return to action after the international break at Stoke City arrives too soon for Aaron Rowe, who has been sidelined with a foot problem.
Danny Ward (hip) is a doubt, with Jordan Rhodes and Pipa on the long-term injured list, with Danny Grant also missing.
Levi Colwill and Danel Sinani are available after returning from international duty for Town, who have another striker in the shape of Mipo Odubeko to add to their forward options.
Corberan said: "With Aaron Rowe, we have clarification for him to come back to training, but he could not train with the group yet. We hope, next week, that he come back to training.
"The only (other) player who is going to be in doubt us Danny Ward because in the last training session, he felt some irritation in one of his hips.
"We will see if he can train or not train today (Friday). But it is not anything important (serious) because if we don't involve him in the game, it will be more as a precaution."
On the decision of the club to bring in West Ham teenager Odubeko to bolster their attacking armoury, the Town head coach continued: "First of all, it is another option as a striker and with the long-term injury of Rhodes, we were thinking it was the best signing because when you lose one striker, you don't another option.
"We know Josh Koroma can play in that position and he has the skills too. But we know he is one of the strikers who can play better on the left side than play as a striker.
"With Mipo, we have a young player who has a lot of potential who can cover one gap in any type of moment of the year. Depending on how he adapts to the club, he is going to be one player that I involve in the squad with the same opportunities to fight for one gap like the other strikers."