Fernando Gago, Rafael van der Vaart and Gonzalo Higuain are reportedly all on the Eastlands club's radar, with representatives in Madrid hopeful of reaching an agreement for all three players.
Real Madrid might be interested in a bumper deal as they look to raise funds for their own raid on the transfer market this summer under prospective new manager Jose Mourinho.
City came close to signing holding midfielder Gago in January, but added veteran Patrick Vieira instead after the move fell through at the last minute.
Creative midfielder Van der Vaart has been a fringe player for much of the year at the Santiago Bernabeu, but has professed his willingness to stay at the club and fight for his place.
Striker Higuain had a successful campaign last year, out-scoring big summer signing Karim Benzema and earning a place in Argentina's World Cup squad. But he is not considered a 'Galactico' by the club's board, and with contract negotiations stalling might well be sold in the summer.
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