The Independent reports that their sources in Portugal says City have made a move for the Argentinian right winger.
Benfica have reportedly already begun the job to brign in a replacement for the 23-year-old winger.
Benfica president Luis Filipe Vieira Ferreira want €40million for the winger, but is reportedly prepared to compromise.
City signed Alvaro Negrado from Sevilla earlier this week and are also close to signing Stevan Jovetic in a £22.4million plus add-ons deal.
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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.