The Sun says Aguero, 20, is one of the hottest properties in Europe, after starring for Atletico Madrid.
City are long-term admirers of the hitman but national team coach Diego Maradona has urged the youngster to move to Italy.
Aguero said: "Maradona keeps pushing me to go to Italy.
"He would actually like me to partner Zlatan Ibrahimovic because then we would be the strongest strike pairing in the world.
"But for now I don't want to betray Atletico."