Many had expected the forward to move on when the season ended, as his contract is up.
However, Howe believes the veteran no.9, who is back in training, can earn another deal.
He told reporters on Friday: "Is there a scenario where Callum could stay beyond his current deal? Of course there is.
"Callum’s got outstanding qualities. I know everyone in football has short memories, but you look at what Callum has done since I’ve been here – when he’s been on the pitch, he’s been incredible."
On rotating Wilson and his other striker Alexander Isak, he added: "That Champions League season, the way he and Alex (Isak) dovetailed together, to help each other and help the team to produce some brilliant performances and results was brilliant to see.
"Now, for a long period of time, we’ve lost that ability to play them together or to help them share the load. That’s been a real frustration of mine, and I know for the players themselves too."
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