Bayern Munich have made Leroy Sané their No 1 transfer target this summer and are preparing a bid of around £70m for the 23-year-old Germany international.
The winger, who has been in and out of the City starting line-up this season, is believed to be keen on a move back to Germany, having arrived in England from Schalke in 2016.
Bayern, who won the Bundesliga for a seventh successive time last weekend, will lose two long-serving wide players in Arjen Robben and Franck Ribéry this summer and are looking to rejuvenate an ageing squad.
The German champions have already spent almost £100m on French defenders Lucas Hernandez and Benjamin Pavard, while teenage Canadian winger Alphonso Davies has made only brief substitute appearances since joining in January.
Bayern forward Robert Lewandowski has spoken of his admiration for Sané this week: “He’s a super player with great qualities and great potential. I’ve already seen many times how good he is. That’s a player who can immediately take us higher, who improves the team.”
Speaking after the FA Cup final victory over Watford that completed a domestic treble, Pep Guardiola had insisted that he wanted Sané to stay – but accepted that some of his squad could leave in search of a regular starting spot.
“We offered to extend his contract,” the Manchester City manager said. “We want him to stay. What proof is more than for six, seven months we want to extend his contract? If we don’t want him, we don’t extend his contract.”
“Some movements we have to do for next season, because people want to leave, players want to play,” he added. “They accept not playing for a period but it’s normal that they want to play more. I can’t assure that to anyone so I understand completely.”
Sané joined City for £37m in Guardiola’s first year in charge, signing a five-year contract. He has scored 39 goals in 133 appearances for City, including the crucial winning goal at home to Liverpool in January.
Named the PFA young player of the year for the 2017-18 season, Sané has won five major trophies in England. Premier League and Carabao Cup success in 2018 was followed by this year’s historic treble.