Juventus, Barcelona and Arsenal are also interested in the Germany international but the 25-year-old wants to work under Pep Guardiola at the Etihad Stadium.
Manchester City has emerged as the frontrunner to sign Borussia Dortmund midfielder Ilkay Gundogan, according to the Daily Mail.
The Germany international is set to leave the Bundesliga outfit this summer having rejected the chance to sign a new contract and is a man in demand.
Juventus, Barcelona and Arsenal have all shown an interest in the 25-year-old while Manchester United has also previously been linked.