The Germany international has plied his trade in Bergamo for the past four years since leaving Dutch outfit Heracles Almelo, registering 50 goal contributions in 155 games for the Serie A side in all competitions.
Gosens's deal with Gian Piero Gasperini's side was due to expire in 2023, but Atalanta are understood to have activated a 12-month extension until the summer of 2024, putting them in a strong position when it comes to future negotiations.
According to Calciomercato, Man City are firmly in the race for Gosens's signature, with Joao Cancelo currently the Citizens' first-choice player on that side ahead of Oleksandr Zinchenko and the suspended Benjamin Mendy.
However, the report adds that Barcelona and Juventus are also considering a move for the £25.6m-rated Gosens, while Inter Milan are rumoured to be contemplating a swoop as they eye reinforcements on the left.
Gosens enjoyed a particularly prolific 2020-21 campaign with Atalanta, registering 11 goals and eight assists in 32 Serie A games, and he is already off the mark this term with a goal and assist in his opening five league matches.