"City have talked to my agent." Elm told Sportbladet.
"It's both fun and flattering that a big club like them show interest in me.
"I don't feel that it is negative that many clubs come to watch me. It's just a boost, it shows that I am on the right track."
Elm also suggested Everton remain in the running for his signature, adding: "I want to join a club where the coach gives me big confidence.
"The overall picture is important, but the biggest club is not necessarily the right one for me."