The Napoli forward is expected to leave the Italian side this summer and City had hoped to convince Cavani to move to the Premier League.
It is believed that both City and the Ligue 1 side are prepared to match the £52million buy-out clause in Cavani’s contract and the player’s reported £200,000 a week wage demands but reports in France suggest PSG have already agreed a deal in principal with Napoli regarding a summer transfer.
If City do miss out on Cavani they are likely to step up their efforts to sign Radamel Falcao from Atletico Madrid but they will also face stiff competition for the Colombian sensation.
Real Madrid have been heavily linked with Falcao, although Atletico are reluctant to sell their star man to their city rivals, while Manchester United and Chelsea are also believed to be involved in the battle for the forward’s signature.
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