The 26-year-old’s current contract with PSG is set to expire at the end of the season.
L’Equipe reports that both Chelsea and City are preparing pre-contract offers for the French international.
Matuidi could enter into a pre-contract agreement with interested clubs in January.
Reports suggest that PSG have offered Matuidi a new contract that could keep him in Paris until June 2018.
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.