Manchester City are reportedly prepared to hand a new contract to winger Raheem Sterling.

Having emerged as a key player under Pep Guardiola, Sterling was handed fresh terms at the Etihad Stadium in November 2018, taking his stay at the club until 2023.

However, over the past 11 months, the England international has maintained his output in the final third, leading to interest in his signature from the likes of Real Madrid.

Metro claims that this has now resulted in City being happy to open discussions with the 24-year-old in an attempt to agree a new extension to his deal.

The report adds that the Premier League champions have no intention of parting ways with Sterling in the foreseeable future unless they receive a fee in the region of £200m.

Sterling has contributed seven goals from nine outings in England's top flight and the Champions League during the current campaign.