After weeks of insistence that €12 million was a sufficient offer, the Bavarian giants are said to be prepared to increase their offer to around €15-16m for the player, who City have allegedly rated at €20m.
Though the English side have yet to lessen their demands, it is believed that the player's desire to move, coach Roberto Mancini's willingness to let him go, and Bayern's increased offer will see the 22-year-old defender complete his transfer.
Should a deal not be completed, Bayern have Chelsea's Alex and Barcelona's Gabriel Milito lined up as potential alternatives.
The other target Bayern are closely watching is Bayer Leverkusen's Arturo Vidal. The 24-year old, who is currently on international duty at the Copa America, has publicly stated his desire to move to Munich. A €15m offer is said to be enough to land the midfielder, but the Leverkusen management have adamantly opposed his transfer to a rival club.
It has been previously speculated that the future of David Alaba depends on whether Vidal completes his move to the Allianz Arena, but according to Bild's report, the 19-year old will not be loaned in any case, and will remain at the club next season.
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