The Sun says City will offer Inter Milan coach Mourinho an astonishing £15million a year to take over as boss.
City's billionaire Arab owners have made Mourinho their first choice to replace Mark Hughes.
Third parties have already taken soundings about the move and have received a positive response.
The termination agreement Mourinho signed on leaving Chelsea banned him from managing another club in England for a calendar year. But he received the final compensation instalment on September 21, leaving him free to return here.
However, it is highly unlikely Mourinho will consider leaving Inter until the end of the season.
That means owners Abu Dhabi United Group must decide if they can afford to wait seven months to get their man.