Negredo, who City value at €25 million, began last season in devastating fashion but lost his scoring touch after the turn of the year and failed to find the back of the net during the final four months of the campaign.
The Spaniard subsequently missed out on a place on Spain's World Cup squad and a broken metatarsal suffered in pre-season against Dundee is likely to see him ruled out until September.
Negredo, who faces competition from the likes of Sergio Aguero, Edin Dzeko and Stevan Jovetic for a starting spot at City, has also been attracting strong interest from Madrid's Liga rivals Valencia.
theGoalmac understands that, as a result of the striker's family ties in Valencia, he would be open to a move to Estadio Mestalla although a late intervention from Madrid, who are being asked to be kept abreast of developments, could be decisive.
The 29-year-old, who had a spell with the Real Madrid B team earlier in his career before being offloaded to Almeria, would be open to a return to Spain and Carlo Ancelotti's side will likely be unperturbed by City's asking price.
Madrid are also set to free up funds from the sale of Manchester United target Angel Di Maria in the coming days, with Ancelotti revealing on Thursday that the Argentina international has asked to leave the club.
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