David Silva WILL sign his new contract at Manchester City.

The Sun says City hope Silva will sign a new deal when he returns from holiday later this month.

Silva is a top target for Real Madrid boss Jose Mourinho after starring for City and Spain over the last 12 months.

But the 26-year-old has made it clear he is happy to stay at the Etihad.

Silva still has two years left on his contract but City plan to make him one of their top earners.