Speculation in Spain was rife when Mancini appeared at the match, with the local media claiming that he was at Vicente Calderon to keep tabs on the Colombian and Malaga stars Isco and Eliseu.
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Goal.com understand that City lead Chelsea in the race for Falcao who has enjoyed a blistering start to the campaign, hitting 12 goals in just seven games so far.
However, the Italian has claimed that he was in Spain to watch his son, Andrea, who is currently contracted to Real Valladolid.
"I am here to see my son who played in Valladolid," he told reporters.
Atletico Madrid president, Enrique Cerezo, also played down Mancini’s presence at the match, whilst insisting that he side are not panicked over the interest their star player is garnering.
"We know that Mancini has come to watch but we are calm on the subject of Falcao," he told reporters.
"I suppose Mancini is here to look for a house in Malaga," he later joked.