Manchester City are preparing to instigate talks with Erling Haaland over a new contract in what would deal a blow to Real Madrid’s hopes of luring the Norway striker to Spain.

Haaland, 23, has just under four years remaining on his existing deal with the Premier League and European champions.

But Telegraph Sport understands City are keen to extend that contract and are expected to discuss new terms with their prolific No. 9 in the months ahead.

Real – who also covet Paris Saint-Germain’s Kylian Mbappe – have a long-term aim to bring Haaland to the Spanish capital after losing out to City during a frenzied battle for the player last year, when he moved to the Etihad Stadium from Borussia Dortmund for £51 million.

But City are determined to keep hold of Haaland and believe he can realise his ambitions with them.

Haaland, who smashed a series of records last season en route to scoring 52 goals and playing a pivotal role in City’s march to a historic Treble, is known to be very happy and settled at the club where his father, Alfie, also played.

City have been delighted not only with Haaland’s extraordinary goalscoring feats but the way he has integrated himself into the life of the club and his relationship with team-mates, staff and the management.

Despite his status as one of the game’s bona-fide superstars, City have been struck by Haaland’s humility and fierce determination to improve and feel they have been important factors in the speed with which he has gelled and his popularity around the place.

With eight goals in 10 games so far this term, Haaland has picked up where he left off last season and the Norwegian will hope to be among the goals again when City travel to Arsenal on Sunday in the first league meeting of last season’s top two.

A City source said: “At the right time, we’ll talk about his future with us but we would like him to stay over many years. It could gather pace over this year but (there’s) nothing formal yet.

“Erling’s happy to be here, we’re happy to have him, it’s working well, he’s fully integrated into the team.

“We talk about his goals but what he brings to team goes beyond goals. His humility and willingness to improve doesn’t get discussed enough, the way he works with his teammates.

“He’s not focused on his own individual records, he wants to win as a collective and that’s what makes him a brilliant player for us to have.”

City recovered from back-to-back defeats to Newcastle in the Carabao Cup and Wolves in the league by beating RB Leipzig 3-1 in Germany in the Champions League on Wednesday.

And Rico Lewis says City are eager to put down an early marker in the title race by overcoming Arsenal.

“It’s a way we can put a stamp on the season and really make sure the rest of the league knows we’re aiming to do the same as last season,” said the City player, who warned that Arsenal will still be smarting after last season’s title collapse.

“I think definitely they will have been hurt after that. They did so well last season and unfortunately for them they didn’t come away with the prize but it’s going to push them to be even better which obviously pushes us.”