The Premier League champions are interested in freshening up their squad and seeing both players as possible outgoings this summer.
According to the report, Raheem Sterling is the first player on that list, and the winger is already drawing interest from Premier League side Arsenal.
The former Liverpool winger was an instrumental player for City early last season but lost his place towards the end of the season due to a drop in form.
Another player on that list is Riyad Mahrez, who is also reportedly attracting interest from Arsenal. The Algerian winger has been on form recently and was instrumental in City’s run to the Champions League final. However, the City are reportedly willing to sell him if the right offer comes in.
Mikel Arteta, who worked with both wingers in his time at The Etihad, is understood to be interested in both players. But doubts over the financial strength of The Gunners persists with their lack of involvement in European football also a hindrance to the transfers.
Other players on the potential exit list are striker Gabriel Jesus and defender Aymeric Laporte, with Harry Kane and Jack Grealish are expected to be brought in before the end of the summer transfer window.