The Belgian is already under contract until 2023.
But City want to reward De Bruyne for his stellar play and loyalty after the club's Champions League ban, which was overturned.
De Bruyne will add another two-years to his current deal and take home over £300,000-a-week, according to the Daily Mail.
The lawyers who represent the 29-year-old are currently engaed in talks with the club.
With the new deal, De Bruyne will be contracted to City until the age of 34.