Atletico Madrid have offered Joao Felix to Manchester City as part of a deal for Julian Alvarez.
The proposal involves Atletico offering Felix on loan with an option to buy plus cash.
City have previous interest in Felix, which dates back to before his loan spell at Chelsea in 2023.
Although City want to keep Alvarez, the 24-year-old is eager to make the switch to Atletico.
City value Alvarez at £75million plus a further £10million based on success.
Atletico Madrid have offered Joao Felix to Manchester City as part of a deal for Julian Alvarez
Although City want to keep Alvarez, the 24-year-old is eager to make the switch to Atletico
Pep Guardiola's City have interest in Felix which dates back to before his spell at Chelsea
Felix, who scored four goals in 20 games for Chelsea, spent last season on loan at Barcelona, for whom he netted ten times in 44 appearances.
The Portugal international has featured for Atletico in pre-season but his future remains uncertain.
Atletico attempted to sign Alvarez earlier this summer but were unable to finalise a deal, while Paris Saint-Germain remain interested in him.
Alvarez previously stated that he wants to feature more prominently for City in 'important matches'.
He said: 'Last season, I was one of the players with the most minutes at City. But... in the end, you don't like being left out of important matches; you want to contribute,' Alvarez said.
'I'll take my time to think about what I want for myself. We will see after the Games. First, if I can, I will take a few days off. Then we will decide.'
Guardiola issued a blunt response when asked about Alvarez's future.
Felix was on loan at Barcelona last season after previously having a spell at Chelsea
He said: 'I don't think about replacing. I knew he said he will think about it.
'Once he has finished thinking, his agent will call Txiki [Begiristain] and we will see what happens.
'I know he wants to play important moments, yeah. 'But the other ones [do] too. 18, 19 players as well want to play the big games.
'I read he wants to think about it. Okay, think about it and after that he will inform us what he wants to do.'
Following Guardiola's comments, Alvarez then said that he is happy at City.
As reported by TyC Sports, he said: 'I heard what Guardiola said. I don't have much to say about it.
'I never said anything bad.
'I just said that I was going to think about it like I do every season to make an analysis of what happened last season, a projection of what may come.
'I always say that I am comfortable and happy at City, which is a great club. So I didn't say anything bad.'
Alvarez has four years remaining on his current contract at City.