The former Liverpool winger has endured a difficult season under Pep Guardiola this campaign, failing to secure his spot in the Manchester City starting XI, and playing very little part in the run to the Champions League final.
Such has been the uncertainty surrounding his position in the Manchester City squad that there has been increasing talk of a possible move away from the club this summer, amid a slight delay and stand-off in contract talks.
However, transfer insider Fabrizio Romano has provided an overview of the situation, and one that certainly aligns itself with the core group of Manchester City supporters who wish to see Sterling remain at the club into next season and beyond.
Speaking exclusively to the Arsenal Lounge this week, Fabrizio Romano revealed how informal discussions have been ongoing between Raheem Sterling and Manchester City over a new contract, however no agreement has yet been reached.
With that being said, it appears as though the firm viewpoint from Pep Guardiola is to retain the services of Raheem Sterling beyond the summer transfer window, and rescue the form of a player who has been instrumental to the Catalan's success since his arrival in the summer of 2016.
"They need to negotiate about the contract," Fabrizio Romano opened. "They are talking, not an official discussion with [Raheem] Sterling, but they are talking with people close to the player. They still have no agreement."
"They need to decide about extending his contract, or maybe selling him this summer. At the moment, Pep Guardiola is still in the position of wanting to keep Raheem Sterling. But he's out of contract in two years, so they need to decide this summer if they want to extend his contract or not."
On the topic of rumours linking the player with a possible interest from Mikel Arteta's Arsenal, Fabrizio Romano denied any advancement in talks but did keep the door open for a move in the event that the landscape changes both on the side of the player and over at the Etihad Stadium.
He explained, "I'm told with Arsenal it is not something advanced, but it could become an opportunity during the market, as there are different moments. There are moments where you do your strategy where you have your priorities, but there is also the moment with opportunities."
"Sterling could be impossible now because Pep wants to keep him and they want to discuss about a new contract, but maybe during the summer it could be an opportunity."
For the moment, Manchester City's transfer window appears to be very much focused on securing a new centre-forward to take the place of Sergio Aguero, while there could also be activity in the centre of midfield and possibly at left-back.
In the days that have followed the Champions League final defeat to Chelsea, there have been murmurs of high profile exits for the likes of Bernardo Silva, Aymeric Laporte, and Gabriel Jesus, however nothing has materialised, nor has there been any concrete interest from Europe's biggest clubs.
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