The Austrian full back worked with current city coach back in Bayern Munich, Pep Guardiola is desperate to strengthen his squad to rebuild and launch a better title challenge next season.
They have identified left back as one of the key areas to improve and Alaba’s current contract stand-off has alerted City to his potential availability.
Alaba, 28, is regarded as one of the best full backs in Europe but has only got one year left on his current deal at Bayern and the German champions have warned they may have to sell if he does not sign a new contract.
It has alerted a host of top clubs with Inter Milan keen while City are watching developments closely amid concerns over Benjamin Mendy’s consistency and his deputy Oleksandr Zinchenko has struggled to plug the gap at times.
City are ready to back Guardiola in the market this summer as they look to get a new left back, centre half and potentially a new forward.
Alaba worked under Guardiola during the City boss’s time at Bayern but there may be concerns over the Austria international’s age, contract demands and also price tag.
Bayern still want Alaba to sign a new deal even with the emergence of Alphonso Davies at left back because he can play different positions but Bayern have also made it clear they will not allow him to leave for free next year.
City are also looking at Napoli centre half Kalidou Koulibaly but at 29 and with the Italian club wanting a huge fee, it would be a strange move.
They have also looked at Bournemouth defender Nathan Ake who could be on the move if his club go down.
City will discover their Champions League fate on Monday with Guardiola publicly insisting his confidence in the club’s appeal against a two year ban.
That is the message also in the dressing room and ultimately much of their transfer planning could hinge on the outcome of the decision.