Manchester City are reportedly prepared to hand a significant 'salary increase' to one of their youngsters.
The defending champions are currently embroiled in a scrap to earn Champions League football through their position in the Premier League table.
However, regardless of whether Pep Guardiola's side finish in the top-five of the standings, the Spaniard's squad will have a different look to it next season.
Fees in the region of £180m have already been shelled out on four new players during the winter transfer window, and more additions and outgoings will be facilitated in the summer.
Nevertheless, Man City are also in a position where they need to retain the services of homegrown talent and integrate them into the senior setup.
© Iconsport
Progress made with O'Reilly?
According to transfer expert Fabrizio Romano, a new long-term contract for Nico O'Reilly has seemingly reached a stage where it is a formality.
Furthermore, the increasingly-influential 20-year-old is in line for a substantial salary increase having become a first-team regular of late.
Since his man-of-the-match contribution, courtesy of two assists, against Bournemouth in the FA Cup quarter-finals, O'Reilly has been provided with four Premier League starts.
In total, he has made 13 appearances in all competitions during 2024-25, impressively chipping in with five goals and two assists to convince Guardiola of his capabilities.
Although Guardiola has insisted that O'Reilly is not best suited to the left-back role, where he has been deployed recently, his versatility in midfield and height brings obvious benefits to this squad.
© Imago
Why City need homegrown talent
During this Premier League campaign, City have used six homegrown players in O'Reilly, Phil Foden, James McAtee, Rico Lewis, Oscar Bobb and Jahmai Simpson-Pusey.
However, with McAtee having just over 12 months remaining on his contract and Simpson-Pusey likely to go out on loan, they could plausibly be down to four such players to fulfil registration criteria.
Naturally, other youngsters could emerge from City's successful academy setup, but when younger players will be acquired in general this summer, Guardiola may not want to lower the average age any further in the short term with the promotion of more Under-18 or Under-21 players.
As such, the inclusion of O'Reilly will help ensure that Guardiola is able to make the most of squad limits in the Premier League and Europe.