The Daily Mail reports that the move by City to offload Dzeko has alerted both Juventus and Real Madrid.
The 26-year-old is frustrated at a lack of first-team football at the Etihad Stadium this season.
Real Madrid coach Jose Mourinho has long been an admirer of the highly-rated striker, while Juventus are desperate to bring in a proven finished this summer.
Dzeko joined City in a £27million deal from Bundesliga side Wolfsburg last summer.
