The Premier League giants tried to sign the Algerian in January but the Foxes refused to sell him. Mahrez has two years left on his deal and Leicester could finally decide to cash in on him now.
The 27-year-old asked to the leave the club in January and it is clear that he wants to make the step up.
The Leicester City winger would be a very good squad player for Manchester City. Guardiola has already got Sane, Sterling and Silva as his wingers and Mahrez would add more depth and flair to the side.
As per the reports, Manchester City are set to launch a £65m swoop for the Leicester City star in summer.
Mahrez has scored 11 goals for the Foxes so far this season and it will be interesting to see whether City manage to convince Leicester this time.
Leicester could be more open to a sale during the summer rather than the midseason window.