The Daily Telegraph say the teenager will pen a six-year deal keeping him at the Etihad until 2024.
Foden, 18, has struggled for game time this season under Pep Guardiola – with all but one of his 13 appearances coming from the bench.
The gifted midfielder is regarded as one of the best young players to come the through the academy since Sheikh Mansour purchased the club in 2008.
Guardiola is a huge fan of Foden, but has come under pressure to give the England Under-17 World Cup winner more first-team action.
Borussia Dortmund, RB Leipzig, Paris Saint-Germain and a host of Premier League sides have enquired about Foden, who has no intention of quitting his boyhood club and is desperate to force his way into the manager’s plans.
But the Catalan coach has so far resisted sending Foden out on loan to aid his development and feels his progress is best served staying with his first-team.
Guardiola is no fan of the Premier League 2 set-up and thinks City should be allowed to field a B team in the Football League, like clubs do on the Continent.
Foden committing his long-term future to City will be welcome news after the exit of Jadon Sancho last year and the inevitable departure of Brahim Diaz, who has agreed to join Real Madrid.
City chairman Khaldoon al-Mubarak spoke last May of his desire to get at least one academy player into the first team each year.
He said: “I’d like at least a player, if not two, playing and competing at the first-team level from the academy every year.
“That is what I would like. Can we do that? We will try everything we can.
“Certainly everyone knows that ambition and target and today I think the academy is producing.
“The short answer is that the academy is producing what we aspire for it to produce and it is doing it now.
“ I’m not talking about the future, I’m talking about now because I know what we have.”
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