De Bruyne’s current deal is not due to expire until 2021 but City opened talks earlier in the season in a bid to secure his long-term future.
The Belgium international midfielder is set to significantly improve his salary with reports suggesting the new deal could be worth around £260,000-a-week.
De Bruyne, 26, has become a key figure since his £54 million switch from Wolfsburg in 2015 and is among the early favourites for the Player of the Year award.
He has helped City to a 12-point lead at the top of the Premier League with six goals and 10 assists, the best in the league this season along with teammate Leroy Sane.
Senior City players David Silva, Nicolas Otamendi and Fernandinho have all signed contract extensions in the past week, while ESPN reports that striker Gabriel Jesus has opened talks over an improved deal.
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