The former Brazil coach wants countryman Ronaldinho to be his first signing and the pair are close after winning the World Cup together in 2002.
But City will not go down without a fight as owner Thaksin Shinawatra reckons big-name signings are vital to his bid to break the top four.
Shinawatra's men have already held talks with Ronaldinho's people.
They can offer him a huge £120,000-a-week deal to play for new manager Mark Hughes.
The Eastlands club insist much of the outlay can be recouped in commercial ventures on the back of Ron's name and in advanced season-ticket sales.
Ronaldinho, 28, has already told Barcelona he wants to leave and is said to be keen on coming to the Premier League.
