City have been progressing talks for Elliot Anderson, and he remains their top priority for a marquee incoming signing.
They have complete confidence that the player wants to make the move, but are trying to come up with a structure and valuation that completely suits Nottingham Forest.
Currently, City have a bid lodged worth £106 million, which rises to in excess of £120 million with add-ons.
Forest have not accepted that offer and value the player at £125 million outright.
While the situation for Anderson remains ongoing, City continue to consider other options in the market, and we understand that Tonali is a name on their shortlist.
We have reported how the midfielder had his heart set on a return to Italy with AC Milan, but that deal is taking time to take shape.
If delays continue deep into the summer, then he would consider remaining in the Premier League, and indications from sources suggest that he ideally fancies a move to Manchester City.
A cash deal for Tonali would not be much simpler than the Anderson one.
However, there is a belief that it could come to life if circumstances arise whereby City need a new proven midfield option.
Interestingly, Newcastle have shown interest in City goalkeeper James Trafford, and that move might yet come to life.
Such a development could spark negotiations around Tonali and help both clubs find a compromise that solves problem areas.
Tonali has also been linked with Manchester United, but the Old Trafford outfit do not want to pay more than £70 million, while Newcastle value him at closer to £100 million.