Manchester City are reportedly confident that they will agree terms with Raheem Sterling over a new contract at the club.

Sterling has established himself as one of City's key players under Pep Guardiola, directly contributing to 40 goals across all competitions last season and already having a hand in eight this term.

The 23-year-old's current contract is due to expire in 2020, and negotiations over an extension have been ongoing for some time.

Sterling's agent is driving a hard bargain with his client reportedly holding out for an offer of up to £300,000 a week, but the Manchester Evening News claims that an agreement is expected to be reached.

The England international has previously hinted at a desire to move abroad at some point in his career, but he is understood to be enjoying life at the Etihad under Guardiola.

Sterling joined City in a £50m deal from Liverpool in 2015 and has gone on to score 48 goals in 152 appearances for the club across all competitions.