The former Real Madrid midfielder, who spent a year in the Premiership with Middlesbrough, is out of contract with Greek side Olympiakos in the summer and would be available on a free transfer.
Kevin Keegan has been told he has no money to spend, so is looking for Bosman deals, and apparently negotiations about a one-year deal for the 34-year-old have begun.
Reports also suggest that City have targeted Arsenal's out-of-contract defender Martin Keown.
Meanwhile, Danny Tiatto and Gerard Wiekens have joined Michael Tarnat in not being offered a new deal, and goalkeeping coach Peter Bonetti has left the club citing the travelling time from his home in the Midlands.