The Etihad Stadium outfit have targeted the Argentina international to bolster their strikeforce, regardless of whether Carlos Tevez departs.
Aguero is now expected to jet out to England with his agent Hernan Reguera and Atletico sporting director Jose Luis Caminero.
City are believed to have tabled a €45million (?39.7million) offer for his services with the striker mulling over signing a five-year contract.
Aguero is reported to have spoken to City's Pablo Zabaleta about life at City and Manchester, although he has not been in touch with Tevez.
The talented 23-year-old is currently home in Buenos Aries following the conclusion of the Copa America, but is now returning to Europe.
Source: Team Talk
Source: Team Talk