Manchester City are making progress in contract discussions with talented academy graduate Nico O'Reilly amid interest from Premier League rivals Chelsea.

The versatile youngster, who has played in midfield and at left-back under Pep Guardiola, has enjoyed a hugely impressive breakout season, even scoring his first Premier League goal in Saturday's 5-2 win over Crystal Palace. The clash with the Eagles was his ninth appearance since the turn of the year and he's proven particularly effective in the FA Cup.

O'Reilly scored in the third round against Salford City and has proven transformative in the last two rounds with four goal contributions in meetings with Plymouth Argyle and Bournemouth. He's now enjoying a run of starts at left-back and impressing with his attacking output in a less familiar role.

Chelsea were aiming to pull a repeat of their transformative Cole Palmer signing from City during the recent winter window, by targeting O'Reilly. But it appears that the Blues will have no chance of persuading the 20-year-old to trade Manchester for London.


Nico O'Reilly, Levi Colwill
Nico O'Reilly has been linked with Chelsea / Jason Mowry/GettyImages

According to transfer expert Fabrizio Romano, City are "progressing in talks" over a new deal for O'Reilly following his recent performances, with the club "confident" of sorting a new contract as they seek to ensure his long-term future lies at the Etihad Stadium. His current deal doesn't expire until 2028 and there is "no rush" over tying the England youth international to new terms.

O'Reilly's presence at left-back has resulted in improved City displays during recent matches and he could prove decisive in the club's pursuit of Champions League qualification and FA Cup glory.

City are reportedly in the market for a new starting left-back this summer, with Tottenham Hotspur's Destiny Udogie identified as a potential target. However, the emergence of O'Reilly has helped ease their concerns in the short-term amid a raft of defensive injuries.


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