The La Liga outfit, currently third in the table, have previously tried to sign the £7million-rated full-back, who still has three years on to run on his contract at Eastlands, before when he was at Espanyol.
Valencia coach Unai Emery is planning to make a big assault in Europe next season and is ready to axe defenders Miguel and Jeremy Mathieu in favour of bringing in an experienced player such as Zabaleta.
A Valencia source told The Sun: "It won't be easy to persuade City to let Pablo go. But he's definitely a good option for us. We need to reinforce our right-back position. Especially as we are looking forward to being in the Champions League next season."