Pep Guardiola last night received a massive boost in his bid to land the Croatia central defender who now looks to be on the verge of a move to the Premier League.
Leipzig will let Gvardiol leave but only if they receive £78million plus bonuses, which could take the deal to around £85m.
Gvardiol, 21, has been a long-time target of Guardiola who wants to strengthen at City despite winning the treble.
City have indicated they are ready to table a £68million bid but Leipzig have warned that will not be enough.
City’s director of football Txiki Begiristain is understood to have already met with the player’s representatives regarding a potential transfer.
Gvardiol, who has 21 caps, joined Leipzig in a £14million from Dinamo Zagreb although was immediately loaned back to the club where he made his mark.
But in the last two years, he has made 87 appearances for Leipzig and his strong performances at the back have alerted City.
Chelsea star Mateo Kovacic has completed a medical ahead of a £25m move to City with the deal to be officially announced in the coming days.
City are also interested in signing West Ham captain Declan Rice.
But they have yet to make a formal offer and Arsenal still look to be in pole position.
Meanwhile, Etihad playmaker Kevin de Bruyne is expected to miss the start of the season through injury.
He went off early as City completed the Treble with a 1-0 Champions League final win against Inter Milan.
But the Belgium ace’s leg problem is reportedly worse than feared.
Scans are said to have revealed KDB has a Grade Three hamstring tear.
TRANSFER NEWS LIVE: All the latest news, rumours and confirmed switches from the world of football