The Premier League giants are willing to double the 18-year-old's £15,000-a-week salary amid reports that Juventus want to snap him up.
City sources have confirmed: "Talks are positive and ongoing but there is no conclusion as yet."
The midfielder is on duty with England's Under-21 squad until next week, but he is expected to put pen to paper when he returns.
Pep Guardiola's side will be keen to get the deal wrapped up before they take on West Ham and then travel to Lyon in the Champions League.
Foden's new deal would come as a huge blow for Juventus, who were hoping to secure his services for just £175,000.
The wonderkid is out of contract at the end of next season and could leave the Etihad for free if a new deal is not agreed.
He has also been linked to Paris Saint-Germain, Borussia Dortmund and RB Leipzig.
Foden, who has been at City since the age of eight, has made 10 appearances for the reigning champions this season.
And he managed to complete more passes than Alexis Sanchez and Romelu Lukaku combined on Sunday – despite only coming on as a substitute in the 92nd minute.
Source: Read Full Article