ESPN claim that Pep Guardiola is still keen to sign Mahrez and will bid to land the player ahead of next season.
The Manchester side are thought to have offered a cash-plus-player offer of around £60m for the 27-year-old in January, but Leicester refused to sell and rejected the deadline day offer.
The East Midlands side have not been shy of offers for the Algeria international over the past two seasons, after Mahrez was awarded PFA Players' Player of the Year for his performances during Leicester's 2015/16 title winning campaign. But The Foxes have held strong to keep the winger at the King Power stadium.
Mahrez is still under contract with the club until 2020, but the player handed in a transfer request in January in a bid to force a move through. Leicester are thought to finally be ready to let the Mahrez go if the right offer comes in, and with dreams of playing back in the Champions League, it is very likely the the Algerian winger will depart the 9th placed club in the summer.
Guardiola is reportedly looking to strengthen his title winning side, and Mahrez is thought to be high up on his list of targets. The attack minded player has ten goals and nine assists to his name in the league this term, and with the ability to play on the right or centrally, the Algeria international offers different options in attack.
Manchester City are thought to have given up on signing Mahrez earlier this year because of Leicester's demand of £95m for the player. But with a Premier League title secured, it is likely that Guardiola will be allowed to bid for whoever he wants, irrespective of the price tag.
If the Etihad is to be Mahrez's next destination, his addition to an already deadly attack that has netted 102 goals this term, is a worrying thought for rival teams.