It is believed that City, and an unnamed J.League club, have made enquiries about the 23-year-old Central Coast Mariners midfielder.
According to Tony Walmsley, City have made contact with the A-League club despite the fact playmaker Caceres was recently dropped by the Mariners head coach.
"I didn't know there was any public information out there until I heard that this morning," Walmsley said on Thursday.
"I do know that (owner and chairman) Mike Charlesworth has been in dialogue with the City Group. Caceres has got a transfer fee built into his contract.
"If Mike and the head of the City Group have come to an agreement, I've yet to be told that's the case.
"But if it is, what a great opportunity for Caceres to go and try and reach the potential we all think he's got. The saddest thing was he didn't stay around to finish his contract – if he does go – and see out his potential here and get a real big signing somewhere else.
"I'm sure whatever deal is struck, Mike will be looking after the club's best interests."
Caceres joined the Central Coast in 2011 before making his senior debut in January 2013. He has gone onto make 67 appearances for the New South Wales club, 12 of which have come in the current A-League campaign.