The Daily Star Sunday says Roberto Mancini is a dead man walking after his second disastrous Champions League campaign in a row.
His men face Manchester United in today's big derby at the Etihad. But the club's Abu Dhabi owners are already scheming to replace him.
They want former Barcelona boss Guardiola and are willing to meet any demands he may have to take the job next summer.
Sporting director Txiki Begiristain is expected to meet Guardiola's agent, Jose Maria Orobigt, next week to discuss the job.
City hope Guardiola's friendship with Begiristain, which goes back to their playing days together, could help swing the deal - and they have been told to expect an answer next month.
Orobigt said: "I have had many meetings with clubs and there are more planned. Pep Guardiola has many offers but his choice is up to him.
"I think that in January, Pep could decide his future."