The 28-year-old has been told that he is free to make his own mind up over his future with the German giants as he enters the final year of his contract at the club.
A number of Premier League clubs have been credited with an interest in him after being alerted to his potential availability, and The Mirror reports that Man City could look to steal a march on their rivals by making the first move.
Pep Guardiola is understood to have identified left-back as an area for improvement this summer due to Benjamin Mendy's injury record and doubts over Oleksandr Zinchenko as a top player in that position.
Alaba played under Guardiola during their time together at Bayern Munich and is thought to fit the bill for possible targets due to his versatility.
The Austria international, who has made 382 appearances for the Bayern first team, has also been heavily linked with a move to Inter Milan. body check tags ::