O'Rourke reported sources have told ESPN FC that the Sky Blues are ready to discuss a new deal at the end of the campaign after an electric season from the England international.
The attacker has rapidly developed under the guidance of manager Pep Guardiola, and he has proved to be one of the most prolific midfielders in front of goal in England this term.
Sterling has found the net 19 times this season in the Premier League and Europe, while also providing seven assists to prove his elevated performance.
Per O'Rourke, the player has two years of his current deal to run, but City are keen to reward Sterling and offer him a fresh contract.
Guardiola has taken the potential of Sterling and turned him into one of Europe's most dangerous players.
The coach's system suits the 23-year-old, and his overall philosophy has encouraged the attacking instincts of all his flair players.