The Bosnia international, who has recently returned from World Cup duty, has yet to extend his stay at the Etihad despite entering the final year of his current deal.
However, a report in The Mirror quotes a source close to the Citizens as saying: "We are comfortable with Edin's situation. Nothing is imminent because has been away at the World Cup and is now taking a break. But he is certainly valued here and the feeling is a new contract will be agreed in due course."
Dzeko, who scored 26 goals for Man City last season, is one of six players at the Premier League champions with less than 12 months remaining on their contract.