Pep Guardiola is eager to add the England international to his squad after a clear-out of his aging full-back options at the end of the 2016-17 season. Bacary Sagna, Pablo Zabaleta and Jesus Navas, all deployed at right-back during the course of the former Barcelona manager's first campaign at the Etihad Stadium, have all left the club, freeing up room for the former Sheffield United youngster.
City had been hoping to tie up a deal for Walker early on in the summer along with those for Bernardo Silva and Ederson, signed from Monaco and Benfica respectively. But according to the Independent, City and Tottenham are still butting heads over a transfer free for the 25-year-old.
Tottenham value their defender at £50m with club chairman Daniel Levy "happy to wait and wait" until that price is met, according to the report.
Walker's future in north London has looked bleak ever since reports of a falling out with Mauricio Pochettino, emerged during the final months of the 2016-17 season.
Walker and his manager clashed over long-running issues over the player's fitness and performance in training, a dispute that resulted in the right-back being dropped for some of Tottenham's most pivotal games during the back-end of last season.
Kieran Trippier replaced Walker in Pochettino's starting eleven in the FA Cup semi-final against Chelsea, the north London derby against Arsenal and in the victory over Manchester United, the last ever game to be played at White Hart Lane.
Trippier's fine form during that period saw him rewarded with a call-up to the England squad, with wide-ranging reports suggesting he has agreed a new five-year contract with Spurs.