Silva has two years left on his current deal, but he has recently been linked with a move to Real Madrid.
The Daily Star reports that Silva is now expected to sign a new five-year contract worth almost £200,000-a-week.
Silva said: “My home is at City and I am totally satisfied there. My head is not at Real Madrid but at Manchester City.
“I’m grateful for my experience at City and I have improved as a player, in every sense, since I joined them. I didn’t know if I was capable of playing like this when I left Valencia.
“I’m on holiday right now, but my agents are negotiating a new deal with City and I think it’s likely we close it in a very short time.”
