It's been reported in Madrid that Real officials met with Neymar's father earlier this month, where it was relayed they were willing to bid €400m this summer to bring the Brazil captain back to Spain.
However, Diario Gol says Guardiola has City now joining the scramble with plans of a €300m cash offer being prepared. While falling short of Real's proposal, it would still deliver PSG a €78m profit on what they paid Barcelona for Neymar a year ago.
And Guardiola is willing to sweeten the stunning deal by including Raheem Sterling in their offer. The England international has seen new contract talks run cold since the New Year and Neymar's arrival would relegate him to a bit-part role.
Former Barcelona star Neymar is a big fan of Guardiola and has stated in the past: "Guardiola is a guy that I really admire and who I would love to work with."