Manuel Pellegrini is confident James Milner will sign a new contract with Manchester City in the near future.

Pellegrini and Milner recently gave the impression a deal was close but reports this week claimed talks between the parties had stalled. Pellegrini admits discussions are still ongoing but expects a positive outcome.

Asked if he expected Milner to stay, Pellegrini said at a press conference: “I think so. There are some differences that can be arranged.

“We are talking with James. It is not easy for all the players to sign a new contract. There are a lot of things to talk, to decide, discuss. I hope finally James will sign his contract.

“I repeat – the same as with Joe Hart – he wants to stay and the club wants to keep him.”

Milner, 28, is in the final season of his current deal and would be free to talk to other clubs from next month.