The Spain international has two years left on his deal and a City delegation flew to Barcelona over the weekend for initial talks with his advisors after Silva signaled he wanted to stay.
Silva has been a massive success since he arrived from Valencia in 2010 to the Etihad, and it was a matter of time when City would make a move to review his current terms at this stage.
Meanwhile, Mario Balotelli's agent has ruled out any prospect of the eccentric City striker moving to Juventus this summer.
"Italian football's economic situation means that at the moment top players can't come to Italy," The Daily Mail quoted Mino Raiola, as saying.
Balotelli has been linked to a host of Italian clubs lately, but the striker has also expressed his desire to continue plying his trade with City. (ANI )