Athletic Bilbao forward Nico Williams is reportedly close to signing a new contract at San Mames.

The 21-year-old's future has recently been the subject of much speculation, as his existing deal with his Basque club is due to expire at the end of the campaign.

Real Madrid and Barcelona have both been heavily linked with the Spain international, who came through the youth system at Athletic before debuting for the first team in 2021.

Williams has made 90 first-team appearances for his current side, scoring 12 goals and registering 11 assists, while his La Liga record stands at six goals and nine assists in 77 appearances.

Barcelona are believed to have contacted the forward's agent last month to discuss the possibility of signing him on a free transfer, while Real Madrid are also thought to be huge admirers of a player who has scored twice in 10 appearances for the Spanish national team.

However, according to Sport, Williams is now close to signing a new contract at San Mames.

The report claims that Paris Saint-Germain, Brighton & Hove Albion and Aston Villa are three other clubs that have been keeping a close eye on his situation with the Lions.

However, there has allegedly been significant progress when it comes to contract discussions, and an announcement could potentially arrive before the end of the year.

"The noise around Nico happens when there are players who stand out, especially with young people because they are valued much more for the potential they may have in the future," Athletic head coach Ernesto Valverde recently told reporters when asked about the youngster.

"It is something fictitious. There is a lot of talk about one player, then another, then another, and everything calms down as time goes by. We hope that Nico will be here with us for a long time."

The current buy-out fee in his contract is thought to be around €50m (£42.9m), and there have been claims that it could be lowered in a new deal, giving him the chance to leave at a later date.

Athletic president Jon Uriarte recently told Movistar: "Both Nico and his family are very happy in Bilbao and at Athletic Bilbao. We both are working so that he can stay here for many years."

Williams has made five La Liga appearances this season, providing four assists, making his return from a three-game absence due to injury in the Basque derby with Real Sociedad last weekend.

The forward is the younger brother of Inaki Williams, who has been in the Athletic first team since 2014, representing the club on 390 occasions, scoring 90 goals and registering 54 assists.