The project is a part of the plan to make City a world superpower in Football.
The stadium currently holds just under 48,000 while rivals Manchester United’s stadium Old Trafford seats 76,000.
A source told News of the World: “There have been rumours floating around the construction industry for a few months that City are looking at how to expand the ground.
“The owners are looking into it but there are a few obstacles to get through before they can get any work started.”