The defender has been an integral part of Pep Guardiola's side since joining the club in 2020 from Benfica.
The 28-year-old Portuguese centre-back made 44 appearances last season, and his current contract expires in the summer of 2027.
Dias set for renewed contract
Manchester City are in negotiations with Ruben Dias to extend his contract, according to transfer expert Fabrizio Romano, via Sportal.
The Citizens are keen to secure their key defender on a new, long-term deal, and both parties are expected to reach an agreement soon.
Despite significant investment in new players, Pep Guardiola's side is eager to retain experienced players like Dias, who can mentor the new arrivals.
Negotiations are expected to intensify in the coming weeks, with both sides keen for Dias to remain in Manchester.