The 25-year-old has seemingly emerged as a leading transfer target for the Premier League champions, who are believed to be prepared to offer £75m plus add-ons for the England international.
Romano claims that Dean Smith's team have already offered Grealish a new and improved contract and are hopeful of convincing him to turn down Man City's advances.
The Englishman made five appearances for his country at this summer's European Championship and contributed two assists against the Czech Republic and Germany en route to the final.
Grealish also enjoyed an impressive 2020-21 campaign for Villa despite some injury problems, scoring seven times and contributing 12 assists in 27 appearances in all competitions.
The versatile attacker is yet to feature for his club during pre-season, having been given time to recover from his exertions for the Three Lions at Euro 2020.