The Mirror reports that lawyers for City and Mancini are currently going through smaller issues in the deal.
The new deal will keep Mancini at the Etihad until 2015 and will see the Italian earn £6million-a-year.
City are keen for Mancini to sign the new deal before the start of pre-season training.
City will also be working to land the transfer targets Mancini feels he needs to defend the Premier League title.
