The 26-year-old still has four years left on his current contract, which English publication 'The Daily Mail' claims is worth £115,000 per week but City are keen to reward the Belgian's fine form with a new deal and a significant pay rise.
De Bruyne has thrived in a deeper role so far this season, clocking up four assists in six games so far this season.
Saturday's game against Watford is the first time he hasn't completed 90 minutes for City this season, with the Belgian withdrawn on the 66 minute mark with the game already well won.
De Bryne has regularly starred since joining City from Wolfsburg for £52m in 2015, managing 16 goals and 14 assists in 41 games in all competitions during his debut season and seven goals and a stunning 23 assists in 49 games last term.
The former Chelsea man is now set to be rewarded for his form, with the aformentioned source claiming that he could be in line to double his current £6m per year wages.