Manchester City are convinced Raheem Sterling is ready to sign a new contract and stay long-term.

Sterling's current contract is due to expire in 18 months' time and he had been toying with a move to Spain, playing for Barcelona or Real Madrid.

However, City are now confident the forward will commit his future to the Premier League leaders, says the Daily Mail.

The decision follows an improvement in Sterling's relationship with City manager Pep Guardiola, who left the 27-year-old out of the team for much of the second half of last season.

Sterling will still wait to see how much game-time he is given over the next few weeks before committing to the club he joined from Liverpool for £49million seven years ago.

But in a significant development, he has accepted for the first time that he will not leave City this month.