The England international failed to become an undisputed starter for Pep Guardiola last season, and his existing deal at the Etihad is due to expire in June 2023.
Despite his struggles at club level, Sterling played a prominent role for England during their run to the Euro 2020 final, and the Premier League champions are thought to be keen to tie him down to fresh terms.
However, there has been very little progress in negotiations between the two parties, according to The Mirror, which comes at a time where Aston Villa are supposedly prepared to accept a £100m City bid for Jack Grealish.
Nevertheless, the situation is understood to be calm inside the Etihad camp, even though Guardiola's side want Sterling to commit his peak years to the club.
The attacker scored three goals and assisted one more for England at Euro 2020, while he registered 14 goals and 12 assists from 49 games across all tournaments in the 2020-21 season. body check tags ::