Barcelona attacker Ousmane Dembele is reportedly poised to sign a new deal with the Catalan giants next week.

The ex-Borussia Dortmund man is set to enter the final six months of his existing Blaugrana contract and would be free to talk to clubs elsewhere from January.

Barca are understood to be closing in on the signing of Ferran Torres from Manchester City, but Xavi is still hopeful that Dembele will commit to a new deal at Camp Nou.

Now, Sport claims that Dembele has now decided to stay put at Barcelona and will put pen to paper on a new five-year deal, albeit with a significant pay cut.

The report adds that the arrival of Xavi has left Dembele feeling optimistic about his future prospects in Catalonia, and the club are set to announce his new contract in the coming days.

Dembele has only made eight appearances in all competitions this season due to injury but has started his side's last three La Liga matches, recording assists against Elche and Sevilla.