David Silva is all set to snub the advances of Spanish champions Real Madrid and put pen to paper on a new contract with English Premier League winners Manchester City.

Silva, who scored the first goal for Spain in their 4-0 win over Italy in the Euro 2012 final, still has two years left on his current deal, but, according to reports, the Spanish playmaker is set to sign a new five-year contract worth £52 million ($81 million).

Silva's exploits in the Premier League caught the attention of Real manager Jose Mourinho and the Spanish giants were ready to make a big bid for the classy midfielder.

However, the 26-year-old, who tallied the most assists during last year's campaign, said he is extremely happy at City and does not expect to move to any other club. "My home is at City and I am totally satisfied there," Silva told the Daily Star.

"My head is not at Real Madrid but at Manchester City.

"I'm grateful for my experience at City and I have improved as a player, in every sense, since I joined them. I didn't know if I was capable of playing like this when I left Valencia.

"I'm on holiday right now, but my agents are negotiating a new deal with City and I think it's likely we close it in a very short time."

Robin Van Persie has been heavily linked with a move to City and Silva said he expects his club to make a few quality signings. "The club are preparing offers for players to improve the squad," he said. "The project will be very ambitious."

City are expected to offer Van Persie £220,000 a week wages ($342,000), but Roberto Mancini is desperate to first get rid of the likes of Emmanuel Adebayor and Roque Santa Cruz with Edin Dzeko also likely to leave the club.