Olmo has rejected RBL's attempt to open new contract talks and plans to leave at the end of the season.
The former Barcelona trainee has been linked with a return to the Spanish giants, though City are now emerging as a rival option.
City are turning to Olmo as Barca attempt to prise Ferran Torres away.
For City manager Pep Guardiola, Olmo is a like-for-like replacement for Torres and has approved a move.
Source: Tribalfootball
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