Manchester City defender Kyle Walker makes crucial transfer decision amid Bayern Munich interest: Reports

Kyle Walker has reportedly decided to sign a new deal with Manchester City and reject Bayern Munich.

The Athletic reports that Walker has performed a U-turn and will now stay at the Etihad despite agreeing terms with Bayern. The 33-year-old had reached an agreement with the Bundesliga champions last month.

However, the two European heavyweights failed to agree a fee for Walker. He's now said to have changed his mind after conversations with Manchester City boss Pep Guardiola.

The veteran right-back was part of the City side that won the continental treble last season. He featured 39 times across competitions, providing one assist, while also filling in at centre-back.

However, talk of Walker's potential exit ensued when Guardiola opted to name him on the bench for the UEFA Champions League final. The Cityzens won 1-0 against Inter Milan, but speculation arose over the Englishman's future.

Nevertheless, Walker now looks set to seal his future at the Etihad by accepting the Cityzens' second contract proposal, which is worth more than Bayern's. Guardiola's treble winners had always hoped to keep hold of the experienced defender.

Walker has won five Premier League, one Champions League, two FA Cup, and four League Cups at the Etihad. He has made 255 appearances for Manchester City and looks set to continue his career with the European champions.

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Is Manchester City's Bernardo Silva Barcelona-bound?

Silva's future is uncertain amid interest from PSG and Barcelona.

PSG look to have been knocked out of the race to sign Bernardo Silva as the Manchester City playmaker is opposing a move to the Ligue 1 champions. Reports claim that the Portuguese attacker is considering either signing a new deal with Guardiola's side or joining Barcelona.

Silva, 28, has two years left in his current deal with the Cityzens but has been the subject of interest from PSG, Barca and the Saudi Pro League. He was a standout performer for City last season, bagging seven goals and eight assists in 55 games across competitions.

Guardiola wants a new contract sorted for Silva, as some of his star players continue to head for the exit door. Ilkay Gundogan and Riyad Mahrez have departed this summer. The Spanish tactician said:

"We need to get a suitable offer, and we did not receive a suitable offer. If they want it, they will get on a plane and talk to our sporting director."

He added:

"Bernardo is very important to us, and we will fight to renew him."

Manchester City's stance is that Silva is not for sale under any condition as they look to keep hold of the Portugal international. It now appears to be a choice of either his current club or the La Liga champions for the former AS Monaco man.

That means both Walker and Silva could be part of Guardiola's side next season. It will be vital the duo are part of the team, as there are just days before the new campaign starts and Manchester City won't want to be scouring the market late on for replacements.