City coach Pep Guardiola has made strengthening his defense of his main missions this summer and the England full-back is thought to be one of his top targets.
Guardiola is hopeful of striking a deal, but Tottenham are in no hurry to let him go, and are reportedly holding out for around £50 million.
City are confident of persuading the Sheffield-born star to move back up north, but Sky Sports reports that Walker is still happy at Tottenham, the club where he has spent the last eight-years.
However, he is thought to have been unhappy about being dropped for several games toward the end of last season when manager Mauricio Pochettino rotated him with former Burnley full-back Kieran Trippier.
With Trippier looking like an able replacement for Pochettino should Walker leave, City are hopeful they can tempt Walker to Manchester even though he only put pen to paper on a new five-year contract last season.
Walker is not the only full-back said to be on Guardiola’s radar with Monaco’s Benjamin Mendy or Southampton’s Ryan Bertrand reportedly being considered for left-back.