Manchester City believe their England forward Raheem Sterling will sign a new deal at the Etihad before the summer.
Sterling's current contract is due to expire in 18 months' time and he had been toying with a move to Spain, playing for Barcelona or Real Madrid.
However, the City forward has had a change of heart and is set to commit his future to the Premier League leaders.
The decision follows an improvement in Sterling's relationship with City manager Pep Guardiola, who left the 27-year-old out of the team for much of the second half of last season.