Chelsea have set an asking price of £75m for the 23-year-old France international, who is currently representing his country at the 2026 World Cup. City are in the market for a right-back to provide competition for Matheus Nunes, and new manager Enzo Maresca — who worked with Gusto for 18 months at Stamford Bridge — is understood to be a driver behind City's interest.
According to BBC Sport, however, Gusto is not a leading candidate at the Etihad Stadium at this stage, with Manchester City sources distancing themselves from a move, likely due to Chelsea's £75m valuation.
Gusto joined Chelsea from Lyon in January 2023 and has been a reliable performer, registering eight goal contributions last season. His contract runs until 2030. Chelsea's decision to pursue Palestra — who plays in the same right-back position — was made with Gusto's situation in mind, though the club are not actively pushing him out.
City have been without a natural right-back specialist since Kyle Walker's departure in January 2025. Nunes, converted from midfield, excelled in the position last season but City see the long-term recruitment of a specialist as a priority under Maresca.
Marc Cucurella's £52m departure to Real Madrid means Chelsea face pressure to generate further sales after a 10th-place finish and a second successive season outside European competition. Real Madrid's interest in Enzo Fernández, valued by Chelsea at £120m, offers the most significant potential windfall of the summer.