Manchester City are offering captain Ilkay Gundogan a new deal.
The 32 year-old is coming off contract and has discussed Bosman terms with Barcelona.
Arsenal are also interested in the veteran midfielder.
However, The Times says City have now come up with a new contract proposal - which runs over more than one season.
The deal will be to 2024, but with an option for another year.
And Gundogan is now leaning towards continuing with City after the new proposal.