'Goal' reports that City boss Pep Guardiola and the club's board are ready to launch a bid for Monaco's teen sensation Kylian Mbappe if their attempts to sign Alexis Sanchez from Arsenal fail.
Arsenal are loath to lose Sanchez and Arsene Wenger stated this week that the club had decided not to sell the Chilean, despite him having just 12 months left on his contract with the 'Gunners'.
However, even if Wenger should change his mind, it is understood that he would not sell to a divisional rival under any circumstances, meaning that City may be forced to switch targets.
City are one of the sides that Monaco have threatened to report to FIFA over alleged 'illegal approaches' for the youngster, but City are not too worried about the threats as they are confident there is no evidence of wrongdoing.
Mbappe became one of the most sought after properties in world football last season after scoring 26 goals and registering 14 assists in 44 games in all competitions last season.
The French international even scored against City in each leg of the Champions League last 16 tie between the two sides, leaving a lasting impression in the process.
Though his signing would certainly be a statement of intent from City, the player is understood to have his heart set on a move to Real Madrid.