Manchester City are said to also be interested in the services of Chelsea managerial candidate Carlo Ancelotti should they failed to sign Bayern Munich boss Pep Guardiola, Daily Star reports.
Current City manager Manuel Pellegrini will see his deal expire in 2017, but his time in charge could be cut short if he fails to lift any silverware this season.
They have named Guardiola as their top target should the club decide to make a change, but the former Barcelona boss is still said to be considering his future with the Bundesliga champions.
The German giants are even preparing to offer the Spaniard a £17million-year deal in order to convince him to reject a switch to the Premier League.
Should he decide to extend his stay with Bayern, City may be forced to battle with Chelsea to the signature of Ancelotti, who is currently unemployed after being sacked by Real Madrid in the summer.
Apart from the two mentioned clubs, Guardiola has also emerged as a candidate to replace Manchester United boss Louis van Gaal once his contract comes to an end in 2017.