The Daily Mirror reports that City are looking for a cheaper alternative to AC Milan defender Thiago Silva.
City were priced out of a move for the Brazil star as AC Milan want £35million for the 27-year-old.
New Liverpool boss Brendan Rodgers faces a major battle to keep Skrtel at Anfield for next season.
Skrtel has also been strongly linked with a move to Russian side Anzhi Makhachkala.