Monaco's sporting director Henri Biancheri told The Guardian: "He's the absolute priority for (manager) Didier Deschamps, for me and for the club.
"We believe it's Nicolas' wish to come to Monaco but the problem is that we can only organise a loan and Manchester City would want a permanent transfer.
"But Nicolas wants to play in a team that will be challenging for the title and he will have a chance of being in the France national team."
Meanwhile, Kevin Keegan has told Trevor Sinclair to fight for his City place after rejecting a bid by Wolves to take him on loan.
The former England international is currently down the midfield pecking order at City and couldn't even make the bench on Saturday, but Keegan isn't keen to let any senior players out on loan until he has strengthened his squad.