Belgian international has led City to two Premier League titles, and FA Cup and a League Cup.
Kompany has been with City since joining from Hamburg in 2008, leading the club to five trophies in the last three-years.
The report suggests City are set to offer the Belgian a whopping £10million a year deal to finish his career at the club, and help provide a platform for further silverware.
His new wage packet is rumoured to be around £200,000-a-week, which if he signs the deal will pocket him an estimated £60million by the end of the contract.
Meanwhile, City are hard at work bringing in a long-term defensive partner for Kompany to tighten up a fragile back line. Eliaquim Mangala is still expected to arrive at the Champions this summer, while Martin Demichelis will likely be a back-up option, and Matija Nastasic could be sold.
But with the Belgian’s rock-solid approach, threat in the opposition penalty area, leadership and graciousness off the field, he is one centre-half most of Europe would dream of having.
Whether any player deserves to earn £60million over six-years is one question, but should Kompany sign the new deal, few could argue that he is one of the best in the world in his position, and therefore should be best rewarded.