Real Madrid monitor Raheem Sterling contract talks at Manchester City - sources

Real Madrid are monitoring Raheem Sterling's situation at Manchester City as the England forward's contract runs down, sources have told ESPN FC.

The 23-year-old is in the final two years of his contract with no sign of a new deal being agreed as yet. Sterling has also claimed he would be open to a move abroad at some point in his career.

"Definitely, it would be nice to play abroad. It would be a great experience. Spain's attractive. Anywhere the weather is nice really," Sterling said in December 2017.

However, ESPN FC has been told there is a willingness from both the club and the player for a new long-term contract at the Etihad as Madrid keep an eye on the situation.

While Madrid have yet to formally approach City, they are watching developments and there is a danger Sterling's value will diminish when he enters the final 18 months of his contract after the January transfer window closes.

Sterling signed a five-year deal following his £49 million move from Liverpool in July 2015 and has made 150 appearances for the club, winning the Premier League title last season.

City have agreed extensions with Kevin De Bruyne, Gabriel Jesus, Ederson and Sergio Aguero over the past 12 months.

Pep Guardiola signed his own three-year contract extension in May and has made it clear he wants Sterling to remain at the club.

"We are delighted with him and would like Raheem to stay," Guardiola said in August.

"We'll do our effort to make him feel we count on him. And we count on him. We arrived after a difficult season [two years ago] and I told him I want to help him and would like him to be happy.

"In the end, the agents may not have agreements and that may not happen. But he knows and his agent knows we like him and want him a lot."