Manuel Pellegrini brought the Argentina international to the Etihad Stadium from his former club in Malaga – by way of a few months at Atletico Madrid – during his first transfer window as City boss.
The experienced centre-back has gone on to register over 104 appearances for the two-time Premier League champions, including 29 across all competitions this season.
But the former Bayern Munich star’s recent form has come under criticism and with his contract due to expire at the end of the campaign, he looks set to leave the Etihad on a free transfer.
According to The Daily Mail, however, Everton and Leicester City are willing to extend Demichelis’ stay in the Premier League, with Roberto Martinez and Claudio Ranieri both looking to bolster their respective defensive options.
But the Premier League duo reportedly face competition from La Liga outfit Valencia.