The 21-year-old striker was linked with a move to the Etihad as Harry Kane alternative as City were in the market for a prolific striker across the course of the summer transfer window.
City may have spent big on Jack Grealish this summer, but remain keen on attacking talent, with a new striker set to be a priority in the January transfer window.
That is according to a report by Vivo Per Lei, who claim that City chief is still looking to add to his attacking ranks by the time the January window comes around, with Vlahovic once again attracting attention.
The youngster, who scored 21 goals in 37 Serie A outings last season, is also being linked with a move to Juventus.
The striker is currently under contract at the Stadio Artemio Franchi until June 2023, but the talks have been going for months to sign him to a new and improved deal.
Fiorentina reportedly want to give the striker a new contract, which would run until 2026 and will likely have a release clause valued at €70million, but would only be accessible for non-Italian clubs.
But Fiorentina president has hinted they may not be able to keep Dusan Vlahovic at the club.
“Vlahovic? Let’s leave it at that…” he told Calciomercato.
“He’s a good kid, good for Florence. I hope he stays for a long time. Renewal? I won’t make promises I’m not sure I can keep…”