The 24-year-old has been in excellent form this season, bagging 25 goals in 38 games for his club in all competitions.
Despite running away with this season’s Premier League title, City’s exit from the Champions League on Tuesday has highlighted that Pep Guardiola’s squad still has room for improvements.
Dybala began his professional career in Argentina with Instituto de Cordoba in 2011.
He moved to Italian club Palermo the following year and his performances in Serie A earned him a transfer to Juventus in 2015.
The playmaker has helped Juve win the league and cup double over the past two seasons and they are on course to claim more silverware this term.
The Old Lady currently lead Napoli by four points with seven league games to play and they are through to the Italian Cup Final where they will face Milan.
Dybala is contracted to Juve until 2022, but City’s financial muscle could put them in pole position to secure his services.