Cape Town - Manuel Pellegrini will be axed at the end of the season with Atletico Madrid manager Diego Simeone already being lined up to replace him at the Etihad.
The Daily Star report that Simeone is in talks with the Citizens to take over as manager for the 2015/16 season.
Manchester City reportedly touched based with Simeone as far back as November last year and senior club figures are continuing to discuss terms to bring the Atletico manager to Manchester.
Pellegrini's future is in jeopardy after crashing out of both domestic cup competitions, failing behind Chelsea in the league and a potentially disastrous tie against Barcelona to come in the Champions League in February.
Manchester City are seven points behind Chelsea as they bid to retain their domestic league title but with City's focus shifting to European glory, Pellegrini could be asked to leave in order for Diego Simeone to steer the ship.
Stoke City host Manchester City on Wednesday at the Britannia Stadium.
The match kicks off at 21:45.
Manchester City's last
six league results:
28 Dec 2014: 2-2 v
1 Jan 2015: 3-2 v
10 Jan 2015: 1-1 v
18 Jan 2015: 0-2 v
31 Jan 2015: 1-1 v
7 Feb 2015: 1-1 v