Guehi, 25, was minutes away from joining Liverpool on deadline day but Crystal Palace called it off as they were unable to secure an adequate replacement.
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The England international has just one year left on his contract at Selhurst Park and is unlikely to sign a new one any time soon.
According to the Mirror, Pep Guardiola’s side are ready to rival Liverpool once his contract runs out at the end of the season.
It’s understood that Guehi doesn’t want to leave Palace mid-season and will weigh up his options next summer.
He has also been heavily linked with several clubs in Europe, with Barcelona and Real Madrid both reportedly interested.