His club FC Copenhagen have stated that they had agreed a fee with the First Division leaders for the left-sided player who is comfortable in both defence and midfield.
FC Copenhagen's director of sport Niels Christian Holmstrom told Danish newspaper BT: "Niclas Jensen wants to play football somewhere else in Europe, so if he can agree his personal terms then the transfer will become reality."
City refused to comment on a bid for Jensen, who has made four appearances for Denmark.