The 26-year-old endured a difficult 2020/21 campaign, much due to the incredibly high standards he had previously set for himself, scoring 14 times in 49 appearances across all competitions last term.
A drop in from coupled with the consistent displays shown by Phil Foden led to Sterling losing his spot in the starting XI at the back end of the season, which was unusual for the winger, who has amassed most appearances among his teammates under Pep Guardiola at City.
However, despite his worrying club form, the winger was back to his imperious best for his his country, as he starred for England on their journey to the final of the European Championships, bagging three goals and an assist for Gareth Southgate's side.
It was reported recently that Sterling was set to be offered a fresh contract at the Etihad Stadium, with club officials keen to tie up some of City's most valuable assets to longer contracts whilst recruiting fresh talent to bolster their attacking outlets ahead of the new campaign.
According to Simon Mullock of The Daily Mirror, City have struggled to progress in contract extension talks with the London-born forward amid their ongoing pursuit of Jack Grealish and Harry Kane.
It has further been stated that the Etihad hierarchy are relaxed about the situation, owing largely to the fact that Sterling has two years left on his current deal in Manchester.
It is highly likely that the ex-Liverpool star, who is the only player alongside Lionel Messi and Sergio Agüero to have netted more than 100 goals under Guardiola's stewardship, could assess how he fits into the Catalan boss' plans in the following season, especially given how close City are in completing a record-breaking move for Grealish.
It is worth noting that the London-born attacker is conducting all conversations regarding his contract himself, with the help of two lawyers.
Sterling, who has been a great servant to City since arriving from Merseyside, was among several big names who were open to leaving the five-time Premier League champions this summer.
Having won a host of silverware during his time at City, Sterling, who is in the prime of his career, often stated that he wasn't pleased with his situation at the club towards the business end of the previous campaign.
However, there are very few teams across Europe that could match his wage expectations, owing largely to the financial implications of the COVID-19 pandemic, hence the search for a new club was always going be a difficult one for the attacker.
It had also been reported that the England international was 'angry' at City's attempts to use as a makeweight in their pursuit of Harry Kane from Tottenham - with suggestions that Sterling could be heading for the exit door this summer.
Regardless, City were reportedly prepared to discuss the possibility of a new contract with the winger after his compelling displays on international duty in the summer.
It was added that club officials would not rush into offering him a new deal, though there were hopes within the hierarchy that Sterling can pick his form up and win his place back in Pep Guardiola's side.
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