Johnson is keen to leave City in order to get regular first-team football.
The 25-year-old has also been linked with the likes of Sunderland, Spurs and Everton.
But the Independent reports that Liverpool have emerged as favourites to land the highly-rated England international.
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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?