The Villains are keen to add experience to their leaky backline, with the club’s owner Randy Lerner reportedly willing to back Paul Lambert financially.
Lambert has highlighted his leaky defence as a major issue, with the Villa Park-based outfit having conceded 15 goals over the Christmas period
Lescott, who grew up supporting the club, is thought to have become frustrated at City, having lost his position alongside Vincent Kompany to Matija Nastasic.
This has tempted Aston Villa, who are keen to add the 30-year-old to their squad.
It is thought that they are able to pay the £10m fee being demanded by the Premier League champions, but his weekly wage could be an issue.
It is possible that City could subsidise his earnings in a bid to clear space in their squad for signings during January.
Both Stephen Ireland and Richard Dunne have moved from the Etihad Stadium to the midlands on similar arrangements, making a switch for Lescott possible.
Lambert may be forced to move on big earners such as Darren Bent and Shay Given should a deal be reached, with the duo attracting interest from a number of top-tier teams.