Ilkay Gundogan will reportedly turn down a summer transfer to Barcelona and sign a new contract at Manchester City.
Speculation over the 32-year-old's future at the Etihad Stadium has been rife for some time, with his current contract due to expire at the end of next month.
Gundogan has been a prominent figure in Pep Guardiola's side over the last seven seasons, contributing with 58 goals and 40 assists in 301 appearances across all competitions.
The German midfielder has won 12 trophies during his time at the Etihad Stadium, and he will be lifting his first as captain of the club on Sunday after Arsenal's defeat against Nottingham Forest on Saturday handed Man City the Premier League title for the third year in a row.
Talks between Gundogan and the Citizens over a contract extension were believed to have stalled in recent weeks, with the midfielder holding out for a deal longer than the one-year extension presented to him.
Amidst speculation that Gundogan could leave the Etihad, Barcelona have been strongly linked with a move to sign the German on a free transfer and are said to be prepared to offer him a two-year deal.
The Catalan giants are understood to have held talks with Gundogan's representatives on several occasions in the hope of completing a deal to lure him to Camp Nou before the end of the month.
The report adds that the Citizens have changed their stance on the midfielder's future and are now willing to offer him a two-year contract with the option of a further year.
This news will provide a huge boost for City boss Guardiola, who has continuously expressed his desire to keep hold of his No. 8.
While City now look set to retain the services of Gundogan, speculation continues to swirl surrounding the future of fellow midfielder Bernardo Silva.
The 28-year-old is believed to be keen to seek pastures new heading into the prime years of his career and recently refused to rule out the prospect of leaving the Etihad this summer.
Barcelona are one club said to hold an interest in the playmaker, although they could face stern competition from Ligue 1 giants Paris Saint-Germain.
Bernardo has scored 55 goals and registered 58 assists in 303 appearances for Man City across all competitions since joining the club from Monaco in 2017, including a brace in the 4-0 Champions League semi-final second-leg win over Real Madrid last Wednesday.