The 26-year-old signed a six-year deal when he joined City from Vfl Wolfsburg for a club record 55 million pounds ($73.58 million) in 2015 but his new contract could run to 2024, according to the reports.
The Independent reported that De Bruyne was expected to double his current wages and earn about 200,000 pounds a week with a series of bonuses on top.
City's owners want to reward De Bruyne for his superb performances this season in their top-flight record 16-match winning league run as part of the contract extension.
"I’ve no feeling to go anywhere else and enjoy being part of the project here and playing the kind of football we are playing," the Belgian said in the match programme ahead of City's 4-1 home win over Tottenham Hotspur on Saturday.
City are 11 points clear at the top of the table, visit Leicester City in the League Cup fifth round on Tuesday and face Swiss side Basel in the Champions League last 16 in February.
"The team is going in the right direction and that’s also important. I made the right decision coming to City and my family feels the same so everything is good," he added.
The former Chelsea player, who helped Belgium qualify for next year's World Cup in Russia, has scored six goals in the league this season with eight assists.
The Independent said City also expected to agree a new deal with 32-year-old Brazil midfielder Fernandinho, whose contract finishes at the end of the season, and have taken steps to sort out a new deal with his 20-year-old compatriot Gabriel Jesus.
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