The Sky Blues captain is set to pen a deal worth around £65m, which will tie him to the champions until 2020 on a massive £200,000-per-week.
Kompany has been, arguably, the Premier League’s top centre-back over the course of the past few years, with his commanding displays helping City to their two titles.
There was talk of a potential move away from the Etihad Stadium to join free spending French sides such as Monaco and PSG earlier this summer, but such chat has quietened in recent months.
And now the club are ready to push the boat out to keep their skipper with a huge offer which could see him spending the rest of his career in Manchester.
Although a fan of the defender, Murphy thinks that such a deal is a danger for City:
“He is a wonderful footballer, a great leader and pivotal to what they are trying to achieve. They need him.” He told talkSPORT.
“But if you give someone a six-year contract, there is always a risk they’ll become a little bit complacent. Not consciously being lazy or complacent, but you can just fall into a comfort zone.
“You could argue, the money he’s earned over the last five years and the amount of contracts he’s had, that he’s always been in the same position. A six-year contract, though, on £200,000 a week, is obviously him finished, financially, for the rest of his career. He is then only playing on personal pride, success, and to try to win silverware, which he has already done.
“I’m a believer in saying, ‘yes, lets reward him with this big contract because he is our captain, our leader’, but he’s going to be 34 or 35 by the end of his contract, and he has had some issues with injury as well.
“It doesn’t matter how big a name and how good you are, keep the desire for a player to keep doing well there. Make him earn that next one. Four years is a long contract. Anything could happen in six years. He could have a horrific injury next season and never come back the same.
“If I was in charge at Manchester City, I would pay him the big bucks, tell him he was our man, but give him four years.”