Spanish giants Real Madrid are believed to be preparing a move for City's Argentinean forward, Sergio Agüero, according to the Daily Mail. Apparently the La Liga leaders are willing to offer Agüero's compatriot, Gonzalo Higuain, in exchange.

There were earlier reports suggesting Madrid manager Jose Mourinho would be in the market, in the summer, for a striker. Several high-profile names, including Arsenal captain Robin van Persie, were linked with a move.

The report says Madrid are looking for a deal that would see Higuain plus £8.5 million go to City for Agüero's services.

The player, who has 17 goals in 27 games in his debut season in England, has previously stated he is happy to remain at Manchester. Madrid will be hoping Mourinho will be able to convince the 23-year-old to make the move.

Incidentally, rumours of Agüero shifting to Madrid are not anything new. There were reports, last month, on ESPN that quoted the player's father-in-law, Argentine footballing legend Diego Maradona, advising him to move to Spain in the summer.

In fact, Agüero's national team mate, Barcelona's Leo Messi, has also weighed in, saying he would like to see his compatriot make the move to the Bernabeu.

Meanwhile, City boss Mancini is believed to be an admirer of Higuain and considering Edin Dzeko might leave the club in the summer and disciplinary issues that surround fellow strikers Carlos Tevez and Mario Balotelli, Higuain could be a great signing for City.

The 24-year-old has had an impressive season at Madrid, with 20 goals in 28 matches but has fallen behind French striker Karim Benzema in Real's pecking order.