City are eyeing Kounde as an alternative to Kalidou Koulibaly.
The Napoli centre-back has proved difficult to lure away and now Etihad chiefs have turned their attention to Spain.
The France Under-21 international was a major part of Sevilla's Europa League win over Inter last month and his reputation continues to rise.
But his €68m release clause may prove a potential sticking point.
Otamendi, who has spent over five years at the club, is reportedly being considered as a makeweight to help secure any potential deal.
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