The Brazilian international was one of the Sky Blues’ priority targets in January, but a late double raid on the Portuguese club – Eliaquim Mangala was the other player involved – ended in disappointment.
Since then Fernando has penned a fresh contract at the Estadio do Dragao, but this is thought to be a move from Porto to ensure that they will receive a fee for his services in the coming window, as his contract would have expired in the next few weeks before the new deal.
City are still keen on the enforcer and are ready to pay around £12m for his services as they plot to further strengthen their Premier League-winning squad.
A number of other sides including Inter Milan and Napoli are thought to be watching Fernando, but Manuel Pellegrini’s men are considered to be in pole position.
A move for the South American will also free up injury-plagued youngster Jack Rodwell to leave the club, with a return to Everton on the cards.