The 30-year-old hit-man was recently named in the World Cup hosts’ squad for the showpiece tournament, after establishing himself as one of his nation’s top forwards.
Fred has thrived since returning to his homeland after a failed spell with Lyon in his younger years, helping Fluminense to numerous trophies since his 2009 move.
But it is understood that the goal-getter has grown a little frustrated with life in Rio de Janeiro, with his current club stalling over a contract offer for him.
This has alerted City and Spurs, who were both interested in Fred last summer.
The skilful forward has bagged 16 goals for the Selecao and has won his spot in Luiz Felipe Scolari’s set-up thanks to his all-round ability and willingness to work in tandem with his other attacking team-mates.
Fred has also netted over 100 times for Fluminense in just under 200 outings, making him one of the country’s top tier’s finest front-men.
Spurs are thought to be particularly interested following the struggles of Roberto Soldado, while City may also move after witnessing Alvaro Negredo’s form nosedive during the latter half of the season.