Manchester City are chasing Schalke midfielder Julian Draxler for this month's transfer market.

The Daily Star Sunday says a Schalke approach for City defender Matija Nastasic prompted the Premier League champions to sound out the German club about £25million-rated Draxler.

City boss Manuel Pellegrini would like first option on wide midfielder Draxler, 21, who has repeatedly been linked with Arsenal.

Draxler is understood to favour a move to the Premier League but has had an injury-hit season after being part of Germany's World Cup-winning squad.

City, who face Sheffield Wednesday in the FA Cup today at The Etihad, will sell Nastasic but want £10m.