According to the Telegraph, the Premier League leaders and the north London club are set to battle it out for the Northern Ireland international's signature. The 29-year-old was allowed to leave Manchester United and the centre-back completed a switch to The Hawthorns in 2015.
After struggling to impress in the last few years at Old Trafford, Evans has established himself as one of the recognised defenders in the league. His form for West Brom saw him attract interest from City.
Pep Guardiola was keen on securing his services on the deadline day of the summer transfer window. However, the Baggies' £30m ($40.6m) plus price tag became the stumbling block for City in bringing Evans to the Etihad.
The former Barcelona and Bayern Munich manager is looking to strengthen his defence, especially after John Stones suffered a hamstring injury. Cityare expected to rekindle their interest in signing Evans as they look to bring him to the club after the end of this calendar year.
Arsenal also saw their £25m ($33.8m) bid for the ex-United defender rejected by West Brom, just days before the summer transfer deadline. Arsene Wenger is still interested in signing Evans as he identifies him as a long-term replacement for Per Mertesacker, who is retiring after the end of the season.
The Gunners and City are expected to rekindle their interest in landing West Brom star in January. They will only allow their player to leave if Arsenal or City manage to meet their £30m asking price.
Evans' employers will be braced for bids for their player. West Brom will now have to take a decision whether to sell the defender and use those funds to bring in new players in January or reject approaches from Arsenal and City.
He has over 18 months left in his contract at West Brom. The Baggies sacked Tony Pulis and replaced him with Alan Pardew. The ex-Newcastle United and Crystal Palace manager admitted he will discuss with Evans regarding his future at the club.
"I think the assurance I need is probably from Jonny more than anybody, and I haven't met him yet. I'm looking forward to seeing him. I think he's a fabulous player and very important for the club, so I will have a good old discussion with him," Pardew said in his first press conference as West Brom manager, as reported by the Birmingham Mail.