The 25-year-old and his agent have been looking for a way out for Chelsea following a disappointing 2025/26, in with the club failed to qualify for any form of European football.
Chelsea value Fernandez at £120 million but aren’t actively looking to sell and would be happy to keep him beyond the summer transfer window amid interest from Man City.
It’s understood that City want Fernandez to replace Rodri, who looks set to return to LaLiga with Barcelona.
According to The Athletic, Xabi Alonso’s side have now informed Fernandez’s camp and City they have until 5pm on Friday (August 14) to match their valuation.
Fernandez had a strong relationship with former Chelsea and now Man City boss Enzo Maresca, and that remains the case.
Fernandez was suspended by the club for two games in April for criticising decisions by the hierarchy and appeared to flirt with a move to Real Madrid.