The Algeria international is understood to have been earmarked as a potential late target for the Premier League leaders after the blow of losing Leroy Sane to injury.
Reports on Tuesday claimed an offer has gone in to Leicester but that the Foxes would have no interest in selling unless a huge sum is on the table.
The 26-year-old would give City manager Pep Guardiola another attacking option as he chases glory in four competitions.
Press Association Sport understands there is an agreement in principle between Arsenal and Borussia Dortmund for the Gabon forward, who was widely reported to have travelled to London on Tuesday to finalise a potential £60million switch.
However, there is the added issue of Dortmund first seeking assurances over a replacement – which could well be Michy Batshuayi from Chelsea, themselves looking to bring in Gunners forward Olivier Giroud.
Manchester City were extremely busy on Tuesday, signing defender Aymeric Laporte from Athletic Bilbao in a reported £57million deal before bringing in English midfielder Jack Harrison from sister club New York City.
Ki Sung-yueng has committed himself to Swansea’s survival battle and insisted his West Ham suitors “are no better than us”.
Press Association Sport understands the Hammers are keen on adding Ki and Swansea team-mate Alfie Mawson to their own Premier League relegation scrap before the 11pm deadline on Wednesday night.
But Swansea do not want to sell anyone and South Korean midfielder Ki – who is out of contract in the summer – plans to see out the season at the Liberty Stadium.
“I have already said my concentration is to survive in the league here and we are starting to play better,” Ki said after Swansea moved out of the bottom three by beating Arsenal 3-1 on Tuesday night. “I want to be here and if Swansea want me to stay here, then I can help this team stay in the Premier League.
“It is a difficult time but I don’t think I am going to leave. I don’t need to move. I don’t think West Ham are better than us.”
Southampton’s attempts to sign forward Quincy Promes are being met by resistance from Spartak Moscow, Press Association Sport understands.
Sunderland boss Chris Coleman said Ovie Ejaria will be joining his side on loan from Liverpool as a replacement for Watford-bound Didier Ndong after their 3-1 defeat to Birmingham, while Nottingham Forest boss Aitor Karanka said he would be adding to his squad following the 3-0 home defeat against Preston.
Jordan Hugill was left out of Preston’s matchday squad against Forest after boss Alex Neil decided he was not in the right frame of mind amid speculation linking him with a move to Crystal Palace.