Gundogan’s contract at Manchester City is set to expire at the end of the season and he is expected to leave the club on a free transfer.
His agent has been fielding enquiries from clubs across Europe and was in Catalunya last month for talks with Barcelona.
The Catalan giants are interested in Gundogan as a potential alternative to his Manchester City team-mate Bernardo Silva, who is likely to be prohibitively expensive for Barcelona.
And according to Spanish daily Mundo Deportivo, progress has been made in talks between Barcelona and the entourage of the German midfielder.
Gundogan is open to a move to Barcelona and would be keen to play for them once he leaves Manchester City.
However, the negotiations are currently on standby as Barcelona are still trying to determine their financial situation.
The Catalan giants will have to sell players and cut into their wage bill before they can sign anyone in the summer.
Barcelona will look to advance the negotiations once they are sure about whether they can register him in the next window.
