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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Liverpool have unveiled their new home kit for next season, sticking with the hugely popular retro styling of the current shirt.
The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.