Manchester City are ready to start negotiations with Erling Haaland over a contract extension, a source has told ESPN.

Haaland still has three-and-a-half years left on the deal he signed when he moved to the Etihad Stadium from Borussia Dortmund in 2022, but the club are keen to reward an incredible first season which saw the Norwegian scored 52 goals in 53 games.

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No formal negotiations have yet taken place but they expected to start over the next couple of months.

City are conscious that Haaland has ambitions to play for Real Madrid at some stage during his career, but the club believe the 23-year-old is happy and settled in Manchester and that he would be willing to agree fresh terms to extend his stay. His current contract runs until June 2027, by which time Haaland would be 26 years old.

City also have 23-year-old Julián Álvarez under contract until 2028. The club are happy with Haaland and Alvarez as the two recognised strikers in Pep Guardiola's squad and have strongly rejected suggestions they are interested in adding 18-year-old Brighton striker Evan Ferguson next summer.

Haaland has scored eight goals in 11 games this season after lifting the Premier League, Champions League and FA Cup in his first campaign at the Etihad.

He also broke the Premier League record for most goals in a single season and was named the Premier League's player of the year. He's also second favourite to win the Ballon d'Or behind Argentina captain Lionel Messi.