Manchester City boss Manuel Pellegrini is confident that James Milner will sign a new long-term deal with the Premier League champions.

The England international has less than six months remaining on his current deal at the Etihad and it has been reported that the two parties are some way apart in negotiations.

However, Pellegrini is certain that the midfielder wants to remain in Manchester.

"I think so. There are some differences that can be arranged. We are talking with James. It is not easy for all the players to sign a new contract. There are a lot of things to talk, to decide, discuss," Pellegrini told reporters.

"I hope finally James will sign his contract. I repeat, he wants to stay and the club wants to keep him."

Arsenal and Liverpool have both been strongly linked with a move.