Sources say the next few days will be important in determining whether City can persuade the defender to leave Crystal Palace now rather than wait until the end of the season.
Guehi’s preference has consistently been to delay any decision until the summer.
The England international is approaching the year with an open mind over his future and has not ruled out any destination.
There has been a long-held belief that allowing his contract to run down would be the most sensible option, as a free transfer would significantly increase his earning potential and open the door to more clubs.
Interest is widespread with Barcelona, Real Madrid and Bayern Munich monitoring his situation, while Manchester City, Liverpool and Arsenal have been tracking him in the Premier League.
At present, City are the only club actively exploring a January deal and there is an expectation they will attempt an approach.
A transfer fee is not considered an issue as City are aware that Liverpool agreed a £35 million fee last summer and a figure around that level would be acceptable.
The main obstacle remains personal terms. City believe their sporting project stands alongside - and in some respects above - any alternative available to Guehi this year.
The chance to work under Pep Guardiola, play alongside Erling Haaland and compete regularly for the Premier League and Champions League is seen as a strong attraction.
However, City also recognise that waiting until the summer would allow Guehi to secure a substantial signing-on fee on top of a major salary.
As a result, sources indicate the club are assessing how they could structure an offer that offsets the financial benefits of a free transfer.
Once formal discussions open up, Guehi’s stance is expected to become clear quickly.
The defender was part of the Crystal Palace side knocked out of the FA Cup by Macclesfield Town at the weekend and now faces a decision on whether to see out the season in south London or pursue a new challenge ahead of the summer World Cup.
City accept a deal is far from certain, but after completing the signing of Antoine Semenyo, they are willing to explore the opportunity.
