The Argentina international has been a central figure for Chelsea since arriving in the winter of 2023, but he has emerged as one of the summer's most talked-about transfer targets, with the 25-year-old reportedly ready for a new challenge.
Real Madrid had previously been credited with interest, before the Spanish giants moved to confirm they were not working on a deal.
The Athletic reports that Chelsea have demanded a bid of £120million to sanction Fernández's departure — a figure that has proven a significant obstacle to any deal materialising.
That deadline is now understood to have passed without City meeting it, yet interest from the Etihad Stadium persists regardless. Manager Enzo Maresca knows the 25-year-old well from his own time at Chelsea and is said to want the move made regardless of cost, according to Sky.
Manchester City are reported to be making progress in their pursuit of Fernández, with Chelsea still willing to sell for the £120million figure originally set.
City are hopeful of getting a deal completed before the end of the week, though no exact bid has yet been reported. Argentine journalist César Luis Merlo wrote a couple of weeks ago that City had tabled an offer worth just over £100million, suggesting the two sides may still be some distance apart on valuation even as talks accelerate.
Fernández has 31 goals and 30 assists in 169 competitive appearances for Chelsea, establishing himself as one of the club's most important midfielders since his British-record arrival from Benfica. Losing him would represent a significant blow for Chelsea's new project under Xabi Alonso, even with the substantial fee involved offering some financial compensation.
City's pursuit comes after a difficult start to Maresca's tenure at the Etihad Stadium, with the club having endured a Community Shield defeat that left the new manager openly frustrated over the pace of his squad rebuild.
Reinforcing central midfield has been an ongoing priority throughout the summer, and a reunion with a player Maresca knows intimately from Stamford Bridge would be a marquee statement as the window enters its closing stages.