The goalkeeper has been linked with a move away from Real Madrid after falling down the pecking order and his international team-mate would love to see him at the Etihad Stadium
The Spain No.1's future at Real Madrid is unclear after Carlo Ancelotti started the season with Diego Lopez as first choice in goal, prompting speculation of a move away from the Santiago Bernabeu in January.
The Etihad Stadium has been mentioned as one possible destination, with Joe Hart's early-season form under scrutiny, and Navas believes that his international team-mate would be a perfect fit for Manuel Pellegrini's side.
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"We all know what a great keeper he is and the importance he has inside the team. At City there are great goalkeepers but Iker would be a great addition."
The 27-year-old left La Liga in a big-money move to the Premier League this summer and is loving life in England so far.
"I'm very content, very happy since the first moment," Navas enthused. "It was an opportunity that I had and that I've wanted for some time. I really like the football that is played and the speed of how it is done. To enjoy football is something unique.
"City are a team that have to aspire to [win] everything. We are strong, we have confidence and we must continue calmly. Although we had a defeat [against Cardiff City], we started the league well. Another target, the Champions League, has not started but we must try to go far."