Pep Guardiola’s side are in the market for a new striker following the departure of club legend Sergio Aguero and are understood to be interested in Harry Kane.
But should a deal for the prolific Tottenham Hotspur striker fail to take place, the Sky Blues are already planning alternative deals.
Silva is one player expected to leave the Etihad Stadium in the coming weeks after growing unhappy with his role in the team, and could prove useful for City in their search for a striker.
Atletico are one the sides interested in signing the Portuguese international, which the Citizens will take full advantage of as they plot a swap plus cash deal for Felix.
According to Eurosport, Man City are now lining up a transfer offer for the 21-year-old – which would see Silva sent to Diego Simeone’s side in the opposite direction.
The former Monaco midfielder has been a fantastic servant for the Citizens, though the club are not prepared to stand in his way of leaving the club as he eyes a more significant role elsewhere.
City would certainly be prepared to allow this to happen if it meant securing the services of Felix, a player the club had been monitoring prior to his £113m move to Madrid from Benfica in 2019.
But of all this depends on the next step taken by Kane.
The 27-year-old has made clear that he is seeking a new challenge this summer as he looks to start winning trophies.
“Yeah, I want to be playing in the biggest games, the biggest moments…
“I hope that we can have that conversation.
“I’m sure that [Daniel Levy] will want to set out the plan of where he sees it but ultimately it’s going to be down to me and how I feel and what’s going to be the best for me and my career this moment in time.”
It is expected that Spurs will demand in excess of £100million for their star man, who is under contract until 2024.