The midfielder, who will be 29 next month, admitted at the weekend that he might have to consider his future if City’s two-year Champions League ban is upheld.
City have consistently maintained to their players that UEFA’s decision will be overturned after an appeal to the Court of Arbitration for Sport.
Kevin De Bruyne will be offered a lucrative deal by Manchester City at the end of the season
Sportsmail revealed in March that the Premier League champions were ready to sit down with De Bruyne to thrash out fresh terms.
Club chiefs remain hopeful of retaining a player they view as captain material once David Silva departs.
De Bruyne has turned down proposals to move away from the Etihad Stadium, with Real Madrid and Paris Saint-Germain among those keeping an eye on his situation.
The Belgian, settled in Manchester with his young family, has three years remaining on his current contract worth a guaranteed £280,000 a week and will be offered an uplift on those figures.
De Bruyne says decision will not be influenced by Pep Guardiola, whose deal expires in 2021
De Bruyne also said his decision to extend his contract wouldn’t be dependent on manager Pep Guardiola signing a new deal. Guardiola is out of contract next summer.
De Bruyne said: ‘I think Pep has said that he’ll stay until the end of next year, whatever happens.
‘I think his contract is running out then.
‘We’ll have to wait, but I’m not going to make a decision based on what he does of course.’