Schalke 04 general manager Horst Heldt has revealed that the club are in talks with Manchester City over a move for centre-back Matija Nastasic.
The 21-year-old joined City from Fiorentina in 2012 and impressed during his first two seasons at the Etihad.
However, the defender has fallen out of favour under Manuel Pellegrini, who has consistently overlooked the Serbian despite injury problems at the back.
"We are very interested and his advisers, who are in England, are in initial talks with Manchester City," Heldt told Bild.
Nastasic has made just one appearance for City this season.