Manchester City are reportedly on the verge of agreeing a new deal with midfielder-turned-defender Matheus Nunes.

The former Wolverhampton Wanderers man is still on the same terms he agreed upon his arrival in 2023, and he is currently due to become a free agent in 2028.

However, Nunes has become a key figure for the Sky Blues at right-back, managing a combined 13 assists across the last two Premier League campaigns after switching from a central midfield role.

Nunes started 32 Premier League matches in Pep Guardiola's farewell season last term, although he is yet to score or assist in 10 games across all competitions in the current season.

Nevertheless, the Portugal international's contributions have not gone unnoticed, and according to the Manchester Evening News, a renewal is close to being sealed.

Man City's Matheus Nunes 'close' to agreeing new three-year contract

Real Madrid manager Jose Mourinho is supposedly interested in signing Nunes, but City have no intention of letting the 28-year-old go and are in talks over a new three-year agreement.

Nunes is believed to be earning around £130,000 a week at the Etihad Stadium, but his new deal would include a £20k-a-week pay rise, taking him up to £150,000 a week.

The defender would subsequently be on the same salary as midfielders Mateo Kovacic and Ayyoub Bouaddi, and City are supposedly confident of retaining his services despite lingering uncertainty over their charges appeal.

Having been found guilty of breaking Premier League financial rules, Man City - who have always vehemently denied the charges - could lose their Premier League status if their appeal against the charges outcome fails.

Nevertheless, the Sky Blues have supposedly stressed that their players remain content at the Etihad, and it should only be a matter of time before Nunes's new deal is announced.

The 28-year-old signed for Man City from Wolves for £51.7m in the summer of 2023, since when he has scored five goals and set up 25 more in 131 games for the club in all tournaments.

Nunes has won the Premier League, Club World Cup, FA Cup, EFL Cup and Community Shield at the Etihad Stadium and was also called up to Portugal's World Cup 2026 squad, but he played just one minute in North America.

Which Man City players could sign new contracts after Matheus Nunes

Nunes is one of four City players who could depart for nothing in either 2027 or 2028; Kovacic and Marcus Bettinelli are due to become free agents next year, while backup goalkeeper Geronimo Rulli is out of contract at the end of next season.

Amid concerns over Gianluigi Donnarumma's form, Rulli may be in line for an extension if he earns a shot in between the sticks and manages to prove himself, although the Argentinian is already 34 years old.

Meanwhile, Ruben Dias and Vitor Reis both see their deals expire in 2029, but the former will likely be in line for at least a new short-term deal in the not-so-distant future.