If a new deal is cancelled by the winger, Manchester City is allegedly willing to let Leroy Sane join Bayern Munich this summer.
Sane remains a target for the Bavarian giants, but it has been reported that they are only willing to go as far as $35m for their next bid.
According to the, City officials have no intention of selling Sane cheaply but are willing to negotiate with Bayern if it becomes clear that the player wants to leave.
Speaking earlier this month, former Bavarian manager Jupp Heynckes indicated that the club would look elsewhere for a new attacking player if Sane leaves.
Sane, who scored 39 goals in 134 appearances for Pep Guardiola ‘s men since arriving from Schalke 04 in 2016, will soon be entering the final year of his current contract.
The German is suffering from a long-term knee injury and has played only once for City, in the Community Shield win over Liverpool last August, since the transfer to Bayern collapsed nine months ago.