The Argentine striker has emerged as one of Europe’s most talked about players this term, with his 11 goals in 22 Serie A games having set tongues wagging across the continent.
Dybala’s pace, movement and eye for goal have led to comparisons with current City ace Sergio Aguero, while alerting some top-level clubs.
United, City and Chelsea are among the chasing pack, with the sides all keen on acquiring his signature.
The 22-year-old is valued at around £30m by Palermo, who have already confessed that they may be unable to keep the in-form marksman this summer.
The three Premier League sides possess the cash to push through a deal and could look to mount serious offers later this year.