Sky Sports News understands Manchester City are in talks with Real Madrid over the possible signings of Fernando Gago and Gonzalo Higuain.
City are looking to strengthen their squad over the summer after agonisingly missing out on UEFA Champions League qualification this season.
They have identified a number of transfer targets and appear keen to strike a deal with Real for Higuain and Gago.
Higuain has enjoyed a stunning campaign at the Santiago Bernabeu, although Argentina coach Diego Maradona recently claimed that Real had not contacted him about a contract renewal.
Compatriot Gago, who was linked with a move to City in January, also established himself as a key member of Manuel Pellegrini's team.
City would have to use all their financial muscle to prise the duo away from Spain but are understood to have entered negotiations with Real.
They are also thought to be in discussions with the representatives of Wolfsburg striker Edin Dzeko.
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