The Saints left-back has been one of the Premier League’s finest young players this term, with the 18-year-old’s performances having helped his side into a solid top half position and earned him a senior England debut.
Naturally a number of the division’s ‘big boys’ are now interested in the teenager, but City are ready to beat their rivals with a massive £30m offer.
The Sky Blues were tentatively linked with Shaw in January, but a winter deal was seen as unworkable.
But Manuel Pellegrini is ready to dedicate a vast chunk of his summer budget to landing the rampaging defender once the transfer window re-opens.
It is understood that hush-hush talks between the two clubs have taken place, and that City have been encouraged by the outcome of discussions.
Shaw is seen by the Middle Eastern-backed side as the ideal long-term left-back option, with both Aleksandar Kolarov and Gael Clichy having failed to convince Pellegrini of their worth.
Chelsea are also in the battle, and have long been tipped as favourites with Shaw known to be a Blues fan.
Yet City are confident that Cesar Azpilicueta’s emergence in the position under Jose Mournho may be enough to dissuade him from switching to the London club.
Tottenham and Manchester United have also been credited with an interest in Shaw.