Gray is one of the most in-demand prospects in English football after a breakthrough season with Birmingham, and manager Gary Rowett has admitted to the Birmingham Mail that the youngster is keen on staying with the Blues.
The Championship boss said: “We have had very good discussions with his representatives. There has been an indication that Demarai likes the club, he likes living locally, he likes what the club have done for him - and he would like to stay.”
This deals a blow to a number of Premier League teams, who have all been linked with signing Gray over the past months.
He is only 19-years-old, but this interest in the winger comes about from an impressive season with Birmingham.
The youngster made 43 appearances in all competitions, scoring six goals and registering two assists. He showed himself to be the best attacking force in a team who struggled for much of the season, and also weighed in with impressive defensive duties when needed.
With his contract expiring at the end of next season, speculation concerning a Premier League move has increased this summer, and Rowett has been trying to tie him down to a longer term deal to rule out any move.
The latest comments suggest as if talks are progressing well between the club and the youngster, and with Gray’s desire to stay with his hometown team, a new contract should be just around the corner.