The 32-year-old former Argentina international is yet to agree personal terms with the Premier League club, though further talks are set to take place on Wednesday
Manchester City have agreed a deal in principle with Atletico Madrid for centre-back Martin Demichelis, Goal understands.
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Personal terms are yet to be agreed with the Argentine stopper, though further talks are scheduled for Wednesday as the Premier League side look to recruit cover for the injured Vincent Kompany.
The Belgian limped out of the 4-0 win over Newcastle United in City's first league game of the season, and with Matija Nastasic also sidelined through injury they were forced to field Javi Garcia alongside Joleon Lescott Cardiff City on Sunday, a game they lost 3-2.
Sources close to the deal revealed that City officials were reluctant to pay over £2m for the defender as recently as last week, but the club are now hoping to push through a move for double that price.
Demichelis only joined Atleti on a free transfer from Malaga in July, but has been singled out by Manuel Pellegrini, his former manager in Andalusia, to bolster his defensive ranks at the Etihad Stadium.
The pair also worked together at River Plate in 2002-03, before Pellegrini moved to Europe to take charge of Villarreal.