City boss Pep Guardiola sees the Spain international as a natural successor for Fernandinho and has urged management to move for the player. Indeed, City have shown a willingness to pay Rodrigo's €70m buyout clause to bring him to England.
However, Bayern are also keen, reports El Larguero.
Having already signed Atletico teammate Lucas Hernandez for a massive €84m, Bayern are now returning to Atleti for Rodrigo.
City, however, hope to convince Atleti to sell to them by including Nicolas Otamendi as part of the deal.