Despite being a vital asset to the Premier League champions last season, the winger has been previously mentioned as one of five first-team players who would be open to a move away from the Etihad Stadium this summer.
Since signing for City from Leicester for £60 million, the Algeria international has proved his importance year on year after an unconvincing first season in Manchester that saw him often being used as a squad player.
In a recent interview with Oui Hustle, the 30-year-old delivered a positive update on his future at City, with the forward suggesting that he is happy at the club and targeting more success under Pep Guardiola, as he enters the final two years of his contract.
As reported by Simon Bajkowski of Manchester Evening News, Mahrez's desire to stay put at the Etihad Stadium has delighted the club hierarchy, who would now like to put an end to the uncertainty around his future at the club by offering him a contract extension.
Mahrez registered 14 goals and nine assists in 48 appearances across all competitions last term, playing a starring role in City's route to the Champions League final by netting crucial goals in crunch knock-out ties against Borussia Dortmund and Paris Saint-Germain.
The consistency displayed by the attacker, especially towards the latter stages of the campaign, drew praise from Guardiola, whose faith in the France-born star was repaid in style as City made significant progress in their pursuit of Champions League glory by reaching the final for the first time in the club's history.
Arsenal, Tottenham and Barcelona are among those who have been linked with the winger ahead of the new campaign, but his comments might have just earned him a fresh deal with City.
What Mahrez said on his future in his recent interview
"What if I want to go higher? I do not see what is higher [than Manchester City].
"I really love England and English football is wonderful. I don't want to leave. I still have goals to pursue here."
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