Dzeko is ready to leave City in January in order to secure regular first team football.
The Daily Mail reports that Dortmund are keen on the 27-year-old, but do not want to spend more than £15million for a replacement for Bayern Munich-bound forward Robert Lewandowski.
The German side look to strengthen in January as they looks set to lose several players this summer, including the likes of Lewandowski, Marco Reus and Ilkay Gundogan.
Reus and Gundogan have been strongly linked with a move to Manchester United.
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The start of the 2017-18 Premier League season is just around the corner and is shaping up to be one of the most competitive yet.
As always it is the so called “big clubs” that have splashed the most cash in the transfer window so far this summer. Manchester United or City? Arsenal or Tottenham? Who are the winners and losers of the transfer window so far?