Roberto Mancini is desperate to bring in a handful of new faces ahead of the new season in a bid to win back the Premier League title from Manchester United.
the club have turned their attention to Isco instead.
According to reports in Spain, City made contact with Malaga to discuss a transfer earlier this week and negotiations are advancing quickly.
and had believed they were in pole position to land him earlier in the season – but they now look certain to miss out.
It is thought that City are willing to be flexible with a fee for the playmaker, but are not prepared to meet his £30million buy-out clause.
Malaga are resigned to losing the player this summer as their crippling debts continue to bite, with the likes of Santi Cazorla, Solomon Rondon and Nacho Monreal all being sold in recent seasons to raise cash to keep them afloat.
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