Sportsmail understands the central midfielder is keen on signing a two-year extension to an existing contract that runs down in 2023.
De Bruyne is expected to put pen to paper on a deal worth beyond £300,000-a-week in basic wages, with additional bonuses built in on top.
City had first planned talks with the 29-year-old towards the end of last season but those were pushed back after the Premier League campaign was paused.
It is believed that De Bruyne and lawyers representing him have been in discussions with the club’s hierarchy over the past few weeks.
City have wanted to reward their bigger stars for showing loyalty towards the club during their legal battle over a two-year Champions League ban imposed by UEFA earlier in the year.
That was subsequently overturned on appeal at the Court of Arbitration for Sport and De Bruyne will become the first to underline his commitment.
Although he still had two-and-a-half years remaining on his current deal, retaining the Premier League and PFA Player of the Year serves as a significant boost.
Should he stay for the entirety of this contract the Belgium international, who is settled in the North West with his wife and three children, would be 34.
De Bruyne was surprisingly overlooked for the captaincy in a recent vote of players and staff after David Silva departed the Etihad Stadium, but is seen as the obvious replacement when current skipper Fernandinho leaves.