CITY will offer Andrew Davies a 'pay as you play' deal to keep him at Valley Parade.
Sources have told the Telegraph & Argus that a new contract for the centre half is set to be heavily incentivised around appearances.
Davies has been a hugely influential figure in City's rise under Phil Parkinson but has also missed a chunk of each season through injury.
He made 34 appearances last term – the most since arriving at Valley Parade in September 2011 – despite a spell out with a broken arm.
There were other minor hamstring problems, although that was often down to being pressed back into action early because of his importance to the side.
Parkinson confirmed: "We are in negotiations with Andrew Davies about a new contract."
Davies revealed in the T&A last month how keen he was to remain with the Bantams.
He said: "I know what the club and the manager have done for me. I do want to stay.
"I really believe the next three or four years are going to be my best and I want them to be here."
But it is likely to be the end of next week before Mark Yeates finds out if he has a future with City.
Parkinson has not had the chance to sit down with the out-of-contract Irishman yet and will wait until he comes back from holiday in ten days' time.
Meanwhile, City could face competition from League One champions Bristol City for in-demand Walsall goalkeeper Richard O'Donnell.
Steve Cotterill's side are thought to have entered the race for the Yorkshireman, who claimed 21 clean sheets for the Saddlers last season.
The Bantams are believed to among the clubs chasing the keeper after he stalled on a new deal to stay in the West Midlands.
Millwall and Reading are also said to be keen and there is rumoured interest from Nottingham Forest after their first-choice Karl Darlow's return to Newcastle.
Parkinson is in the market for another keeper to compete with Ben Williams for the number one jersey.
But the City boss has dismissed a report in the Dutch press that City are preparing a bid for Helmond Sport winger Stanley Elbers.
The 23-year-old, who plays in the second tier in Holland, was quoted as saying: "I hope it works. I would like to make a new step."
A winger is likely to be high on City's target list over the summer and Elbers' name could have been one on the scouting list. But Parkinson admitted: "I've never heard of him."
Elbers is halfway through a four-year contract and, according to reports, the Eindhoven-based club would have been looking for a fee of up to £200,000.
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