The Sun says City will reject any bids to sign England star Sterling in January.
And the champions remain focused on persuading the 26-year-old to sign a new deal.
Sterling has less than two years on his contract and talks over a fresh one are on hold.
That has put a big question mark over his long-term future at City, where he has been for six years.
Barcelona are monitoring the situation and could make a cheeky loan bid in the new year.
The hard-up Catalan giants know Sterling has expressed an interest in playing in Spain at some point in his career and hope that could tip the balance in their favour.
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