Cipriani's current deal runs out in June and recent reports have linked the 30-year-old with a move to France after he missed out on a place in Eddie Jones' England squad.
Young says he expects the stand-off to have informed the club about his future early in January.
"Danny's gone on record as saying it's a decision he'll take after Christmas," Jones said in the Coventry Telegraph. "Most of our players are re-signed just before or after Christmas. Danny's no different to anyone else.
"His agent is doing his job as all agents do and looking at what's out there for his client. Danny will decide what the best course of action is after that. We'll be doing the same.
"So early January is when we would like an answer by, because we don't want to leave it much longer, as I'm sure Danny wouldn't either.
"It's his agent's job to provide him with as many opportunities as possible. Then he's got to make a call and we can't sit on our hands on any player, so we've got to do exactly the same as him."