The 22-year-old still has two years remaining on his deal with the City of Manchester Stadium side, however the Eastlands outfit want to prolong his stay.
Head of communications Paul Tyrrell confirmed talks between the two parties have commenced and that the youngster is a vital member of the club's squad.
"We remain confident that Shaun will pledge his long term future to City," Tyrrell told the club's official website.
"The talks are constructive and ongoing and we have made it clear how important Shaun Wright-Phillips is to Manchester City."
Wright-Phillips was a virtual ever-present under manager Kevin Keegan last term, and the former Newcastle and England coach will not even entertain the idea of the youngster departing.
"I don't think there is really an awful lot to say about these rumours. I have never had a conversation about him leaving the club," said Keegan.
"I think Manchester City without Shaun Wright-Phillips is not even worth talking about."
