The Daily Star says Manchester City are turning to Portugal international Palhinha after missing out on a deal for West Ham midfielder Lucas Paqueta in the summer.
City are readying a "£50 million bid" for Palhinha next month.
The midfielder also remains a target for Bayern Munich, where a deadline deal on September 1st collapsed for the Fulham man.
Manchester City will reportedly go for Palhinha once they move on Kalvin Phillips.