Talks are ongoing between City and Foden’s representatives, with both sides said to be close to a new six-year agreement worth £150,000-a-week.
City are ready to reward Foden’s emergence as one of their most influential players with the contract extension, which will replace the last one he signed, in 2018.
The new contract is understood to have been agreed in principle before the international break and is likely to be confirmed in the coming days.
Foden’s start to the new season was delayed due to the foot injury that ruled him out of England’s penalty shoot-out Euro 2020 final defeat to Italy at Wembley.
But the 21-year-old was back to his best in City’s 2-2 draw at title rivals Liverpool before the international break, scoring a stunning goal in the epic encounter.
Foden made his City debut in the Champions League in 2017 and has since gone on to make 130 appearances for his boyhood club, scoring 33 goals, as well as earning 11 England caps.
Stockport-born Foden has won three Premier League titles, four League Cups and the FA Cup, as well as reaching last season’s Champions League final, which City lost to Chelsea.
Foden is the latest high-profile City player to commit their long-term future to the reigning Premier League champions, with Ederson, John Stones, Rube Dias and Kevin De Bruyne all having signed new deals within the last six months.