Kovacic will enter the final 12 months of his contract at Chelsea following the end of the ongoing campaign.
The midfielder is yet to be offered a new contract and there is now speculation over his future at Chelsea beyond the summer.
His contractual situation has alerted several top clubs across Europe and Manchester City are amongst them.
Pep Guardiola has been an admirer of the midfielder and the Premier League champions were interested in him when Kovacic joined Chelsea in 2018.
With Kalvin Phillips yet to make an impact and question marks over Ilkay Gundogan and Bernardo Silva’s future at the club, Manchester City are likely to sign more than one midfielder next summer.
Jude Bellingham is their top target but they will face competition from the likes of Liverpool and Manchester United for his signature.
Kovacic is being looked at as a cost-effective quality option if he does not sign a new contract with Chelsea.
The midfielder is facing making a big decision over his future as he enters the final year of his deal at Stamford Bridge.