The former Liverpool man now has only 18 months left to run on his existing deal with the Premier League champions and has been persistently linked with a switch to Barcelona in recent times.
Sterling is not expected to complete a move elsewhere before Monday's January deadline, but Man City will have a major decision to make in the summer if contract talks - which are said to have just resumed - continue to lead to nowhere.
According to the Daily Star, if it becomes clear by the end of the season that Sterling will not put pen to paper on an extension, Man City will 'reluctantly' entertain offers for the 27-year-old.
The report adds that City are still holding out hope of a new contract being agreed, but Sterling remains dissatisfied with his lack of consistent starts under Pep Guardiola.
The England international has featured from the off in 13 Premier League games this term and has a total of nine goals and three assists from 27 appearances in all competitions in the 2021-22 season. body check tags ::