The report says the Royal Blues are currently holding talks with the striker for a possible move in the summer, following his good showing for FC Zurich in Swiss Super League.
Domenico Tedesco's outfit are said to be looking to bolster their attacking line ahead of their return to the Uefa Champions League next season, and have identified the 22-year-old as an option.
The Germans will, however, have to battle it out with Italian giants Napoli, who are reported to have expressed interest in the Ghanaian.
English side Brighton and Hove Albion, who called off a move for the attacker last season on reasons of failed medical, are reportedly also back for the centre-forward.
This season, Dwamena, who can play in any position across the frontline, made 32 league appearances involving 28 starts for Zurich, scoring nine times.
The Nkawkaw-born, who joined The City Club from Austria Lustenau, last year, scored a combined 30 goals over the course of last season.
He was once on the books of Austrian giants Red Bull Salzburg, featuring for feeder side Liefering.