He joined the Citizens from Girona in 2019 in a £11million deal but is yet to register a single appearance for the club and never spoke with Pep Guardiola.
Porro went straight to Real Valladolid on a season-long loan, featuring 15 times as he helped the club to 13th place in LaLiga.
He later joined Sporting Lisbon on a two-year loan deal and delivered the league and domestic cup double during his first campaign.
The Spaniard scored the winning goal in the League Cup final victory over Braga in January as he made waves in Portugal.
The 22-year-old right-back has made a strong start to the season as he helps the club's title defence, scoring two goals in 15 appearances this season.
Portuguese newspaper O Jogo have reported that Sporting are 'struggling with money' and cannot afford to purchase the Spanish right-back, who made his international debut in a World Cup qualifier in March, from City.
And it has seemingly presented the opportunity for Real Madrid to sign him next summer.
It could all come down to Sporting Lisbon's pivotal Champions League clash with Borussia Dortmund.
If Sporting do secure their place in the knockout phrases, they can earn €9.6million (£8.06m) in prize money that could help raise funds to secure the full-back's services.
Defeat, though, would likely see Sporting miss out on the player.
Doing so means they would not be able to land him and then immediately sell him on to a side like Real Madrid for profit to futher boost their coffers.
Porro's recent performances have caught the attention of Real, who are 'leading the race' to sign him.
If Sporting can't raise any funds, the Spanish outfit can sign the full-back directly from the Etihad but likely for an inflated fee.