The 29-year-old fell down the pecking order under Pep Guardiola last season - appearing in just 12 Premier League games.
And the arrival of Josko Gvardiol from RB Leipzig for £77million has deemed the French-born Spain international as surplus to requirements.
According to The Mirror, the Citizens are looking to cash in on the defender following the signing of Gvardiol.
It has been said that City have slapped a £30m asking price on the player, who has won five Premier League titles at the Etihad.
This has alerted three Premier League clubs, who are all claimed to be keeping tabs on his situation.
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North London giants Arsenal and Tottenham are keen on Laporte, along with Aston Villa.
Though City prefer to sell to a team outside of England as they do not want to strengthen a rival club.
This may likely be due to City allowing Gabriel Jesus and Oleksandr Zinchenko to join the Gunners last summer, who almost pipped them to the top-flight title.
Laporte signed for City in January 2018 from Athletic Bilbao after activating his £57m release clause.
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He has featured in 179 games in all competitions - chipping in with 12 goals.
His dazzling displays in the 2018/19 season, where he played in 35 Premier League matches, saw Laporte named in the PFA Team of the Season.