According to Ian Ladyman in the Daily Mail, after a recent breakthrough in negotiations City are now "confident" Silva, 31, will sign an extension worth around £150,000 per week that will see his contract expire in 2020 instead of 2019.
Ladyman added there has been interest in the creative Spaniard from AC Milan and home club Las Palmas—where he could finish his career—but Silva is eager to win the UEFA Champions League with City and is on the verge of committing to the club for another year.
Spain international Silva has started the 2017-18 campaign in impressive fashion, providing eight assists in nine Premier League and UEFA Champions League matches, per WhoScored.com.
Sky Blues manager Pep Guardiola has a wealth of creative talent to call upon in midfield but, alongside Kevin De Bruyne, Silva is arguably the best of the lot.
His further commitment to the Manchester outfit can only be good news as City bid for Premier League and Champions League glory in 2017-18.
Bernardo Silva, 23, is his namesake's obvious successor in midfield at the Etihad Stadium after he was signed from Monaco for £43 million in the summer.
However, David Silva has been so good this season that he has largely kept the talented young Portuguese out of the first-team squad.
The former Valencia man is showing no signs of a dip in quality despite nearing his 32nd birthday (in January).
The £25 million City spent on Silva back in 2010 has proved to be money well spent and an extension would make sense for all parties.