Kyle Walker has agreed a two-year extension to his Manchester City contract despite being convinced the Premier League champions will bring in top-class competition for him this summer.

The England international’s new deal is believed to be worth close to £180,000-a-week if performance-related bonuses are met and will tie him to the club until 2024. An official announcement is due this week.

But Walker knows his position will be far from guaranteed next season.

City are prepared to sell Danilo and replace the Brazil international with a right-back who is expected to provide fiercer competition in what Pep Guardiola considers a crucial position.

Juventus’ Joao Cancelo is the preferred option and will be given the opportunity to establish himself as first choice. But Walker is still determined to commit his future to the club after two trophy-laden years at the Etihad since his move from Tottenham.

The 29-year-old was happy to sign for City two years ago even with Guardiola pursuing Brazil legend Dani Alves, who ultimately joined Paris Saint-Germain.

Walker has been pivotal to Guardiola’s five domestic trophies during that time, cementing his place ahead of Danilo. Arriving in a deal worth an initial £45m, it’s believed that figure has risen beyond £50m due to add-ons.

Danilo’s failure to play regular first-team football will see him look to leave during this transfer window.

Guardiola was happy to keep the former Real Madrid defender but City are prepared to sell for the right price, with Inter Milan targeting him.