Barcelona defender Dani Alves has played down the importance of renewing his contract with the Spanish league leader, saying on Monday "life will go on" if the two sides fail to agree to terms.

The 27-year-old Brazil international's contract runs out in June 2012 and renewal talks have dragged on amid reports of a possible move to Manchester City.

Sports daily Mundo Deportivo reported last month that Alves turned down the chance of a contract extenstion to 2015 that would have placed him in the same wage bracket as teammates like captain Carles Puyol.

But Alves seems in no hurry.

"I am very optimistic about the renewal of my contract and I know that it will be resolved," he told a news conference following a Barcelona training session.

"Whether I remain here is something that depends on the two sides. If both sides want it, I will continue here. Otherwise, life will go on. I am not going to pull my hair out if in the end they decide I don't deserve to stay here."

Barcelona legend Johan Cruyff has urged the club to sell Alves to Manchester City, saying the club should cut its losses.

"Barca have a wage scale that cannot be ignored," he told Barcelona-based newspaper El Periodico.

"Barcelona are a sensational team with or without Alves. Is it better to have him with us? Sure. However, if Manchester City's offer is for real it may be better to sell him rather than wait for his contract to end and then he will go for free."

Alves joined Barcelona in 2008 after six seasons with Sevilla.

Pre-Christmas reports from England claimed City was willing to pay 30 million pounds ($49 million) for Alves.