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Higuain |
City boss Roberto Mancini is currently locked in a three-way battle with Manchester United and Juventus for Arsenal striker Robin van Persie.
But executive Brian Marwood is championing a move for Argentine striker Higuain instead - which would still count as a sensational coup for the Premier League champions.
Unsettled Higuain has also been a target for Chelsea and Tottenham, but money-bags City have the spending power to blow them away.
Although Mancini is desperate for van Persie, the Dutchman is believed to favour a transfer to either United or Juventus over joining the gaggle of Arsenal old boys at Eastlands.
Mancini has already expressed his frustration at a lack of transfer activity after hitting deadlock on van Persie.
The situation has caused City to look at alternatives such as Higuain, who would be able to link up with fellow Argentina forwards Sergio Aguero and Carlos Tevez if he made the move.
Real boss Jose Mourinho has said publicly that the club want to keep the 24-year-old and give him a new contract.
But Higuain grew frustrated last season when he was kept out of the team by Karim Benzema, and that may now tempt him to leave the Bernabeu.
Mancini went on record earlier this year about his admiration for Higuain, but City still need to ship out strikers as they try to fall into line with UEFA's Financial Fair Play rules.
Howver, Emmanuel Adebayor's move to Tottenham is on the brink of collapse over his £150,000-a-week wage demands.
The Togo striker also wants a £5m signing-on fee.
Tevez has been praised for his work-rate in pre-season but could yet leave, and Roque Santa Cruz - City's forgotten £17m striker - is being offered around, but they are struggling to even give him away because of his big-money contract.
But City now have other options as well as van Persie and Higuain would be a stunning deal to send more shockwaves through the Premier League.
* A CITY team which included their Euro 2012 representatives Joe Hart, Joleon Lescott, James Milner, Gael Clichy, Samir Nasri and Nigel de Jong in the starting line-up lost 2-1 to League One side Oldham in a friendly on Tuesday night.