Manchester City boss Mark Hughes has confirmed the club will hold talks with Daniel Sturridge's advisors this week over agreeing a new contract.
Sturridge's current deal is due to expire at the end of the season, and the likes of Chelsea and Aston Villa have been mooted as interested parties.
The 19-year-old striker has impressed during his 13 Premier League appearances this term, and Hughes is keen to tie him down on fresh terms.
Hughes told the Manchester Evening News: "We want Daniel to stay; that is a given.
"The club has got itself in a situation where we are in the last year and now six months of his contract so obviously his advisors understand that they are in a position of strength and we are trying to do a deal that shows our intent with regard to Daniel.
"We are not quite there yet but there are meetings planned for this week so hopefully something can come of that, we can put it to bed and Daniel can concentrate on being a player for Manchester City.
"He has made something like five Premier League starts and he is still making his way in the game but what he has done when he has come into the side or come on as a substitute is make an impression and that is what you have to do as a young player.
"We have seen day-in and day-out what quality he has and we want to keep him, obviously, but there has to be an understanding too from his advisors that there is a level for everybody and I am sure there is a compromise to be made."