The 33-year old Slovenian attacking midfielder is believed to be in talks with City to become their international marquee following the capture of Fulham great Damien Duff and the loan signings of Chelsea icon Frank Lampard and ex-Barcelona striker David Villa.
Reports from Melbourne suggests that Koren has been negotiating with City during their pre-season tour of Manchester and that a deal could soon be concluded.
Koren has been at the KC Stadium since arriving from West Bromwich Albion in 2010 and has made 151 appearances for 29 goals for the Tigers.
Former Dravograd, Celje and Lillestrom ace Koren has also played 61 times for Slovenia including the 2010 World Cup in South Africa.
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