Manchester City are set for new contract talks with James McAtee, with the midfielder impressing Pep Guardiola during his loan spell at Sheffield United, according to a report from the Daily Mail.

Which players could leave Man City this summer?

There is a growing possibility Man City may be able to keep hold of Ilkay Gundogan this summer, despite interest from Barcelona, as they have now offered the midfielder a new €9m (£7.9m) per-year deal to remain at the Etihad Stadium.

Guardiola is clearly keen to keep hold of the German, however there have been reports he will not stand in Bernardo Silva's way, should the Portugal international want to leave this summer, and he is also said to be eyeing a move to Barcelona.

City are understandably very keen to keep hold of striker Erling Haaland, after his record-breaking first season in Manchester, and they are now preparing to open talks about a two-year contract extension, according to Football Insider.

McAtee is yet to have the same sort of impact in a Man City shirt, however the club are now set to offer him a new contract, after impressing during his loan spell at Sheffield United this season, as per the Daily Mail.

The 20-year-old has delighted Guardiola by overcoming obstacles early on in his loan spell with the Blades, and he went on to play a key role in their promotion back to the Premier League, winning the club's young player of the year award.

After his impressive loan spell, the starlet is attracting interest from the likes of Aston Villa, Leicester and Brighton, but City believe he could soon make the step up to the first team, and are keen to keep hold of him.

Should James McAtee be offered a new deal?

After mainly being utilised as a substitute during the first couple of months at Sheffield United, the Salford-born midfielder went on to become a very important player, recording four goals and one assist in his last seven Championship games.

Hailed as "excellent" by journalist Josh Bunting, the £10k-per-week maestro is also a fantastic dribbler of the ball, ranking in the 97th percentile for successful take-ons per 90 in the past year, when compared to his positional peers.

City are blessed with strength in depth at central midfield, particularly if Gundogan pens a new contract, however McAtee is showing all the signs he could break into the first team in a couple of years time, and it is great news he is set to be offered a new deal.