Pep Guardiola is still in the hunt for a midfielder after losing out to Chelsea in the battle to land Jorginho in the summer.
Neves, 21, shot up City’s list of possibles after Guardiola’s most wanted headed to Stamford Bridge instead.
And the Etihad chief has admitted he would look at spending big again in the next window – if the right man was available.
Neves, a sensation in 12 months at Wolves, has been dubbed the Portugese Andrea Pirlo – the Italian legend who is his hero.
City travel to Molineux next week and had scouts in the ground for the Prem new boys’ first game last week, when Neves scored one and made another in the 2-2 draw with Everton.
Guardiola wants someone who can do the holding job and Neves – for all his attacking talents – has impressed when he has filled the role.
He is represented by Jorge Mendes, who already has a number of players at City such as Bernardo Silva and Ederson.
Guardiola is also aware of Neves’ comments earlier this month, when he admitted he is a huge fan of the City boss and was looking forward playing at the Etihad most of all this term.
He is contracted to until 2023 and Wolves are under no financial pressure to sell – especially as his price tag will rocket even further if he continues his storming start to life in the Prem.
But the prospect of playing under Guardiola would hugely appeal to the player, and he is certainly on the “watch list” of City’s January targets.
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