The champions still want to strengthen their midfield department this summer, despite the arrival of Mateo Kovacic from Chelsea.
Wolves midfielder Nunes has caught the eye of Pep Guardiola and he is keen on bringing the Portuguese to the Etihad this summer.
Manchester City have opened talks with the Midlands outfit and tabled a £47m bid for the player.
However, they failed to match Wolves’ expectations with their initial bid and are expected to come back with a second one.
It has been claimed that Manchester City have held positive discussions with Wolves despite their rejection of the initial bid, according to Italian journalist Rudy Galetti.
The Sky Blues are optimistic about landing Nunes this summer and their next bid is expected to be in the region of £60m.
Nunes joined Wolves last summer from Sporting Lisbon for a fee in the region of £42m and has four years left on his contract.
