Bayern Munich have agreed terms with Edin Dzeko over a move to the Allianz Arena but are yet to agree a fee with Manchester City for the striker, according to German broadcaster Sport1.
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Dzeko, 26, began the 2011-12 season in blistering form for Roberto Mancini's side but appeared to lose his confidence and the faith of his manager in the second half of the campaign, starting just eight games after the turn of the year.
However, Dzeko's agent Irfan Redzepagic poured cold water over reports that a deal had been made, telling SportSport: "Of course not. It's crazy even to comment on that."
The Bosnia international still played a key role in City's Premier League title success by scoring 14 goals, including a crucial late equaliser against QPR on the final day of the season, but often appeared frustrated at his lack of game time behind first-choice frontman Sergio Aguero.
Since the season ended, Dzeko has been heavily linked with a switch to Italian giants Juventus, though his agent claimed last week that he wanted to stay at City.
"Dzeko remains at Manchester City," Redzepagic told tuttomercatoweb. "We are pleased for the rumours about Juventus, they are a great club.
"But Edin plans to stay at Manchester City. I recently spoke with Marotta, but we talked about other things and we have not talked about Dzeko, because he wants to play in England at City. I think Edin won't leave City."
However, Dzeko has now again been tipped to head for the Eastlands exit, with Bayern reportedly ready to offer €20 million for the former Wolfsburg star, who was prolific during his last spell in the Bundesliga.
Bayern have already brought in reinforcements since losing the Champions League final to Chelsea, with Claudio Pizarro returning to the club from Werder Bremen, while goalkeeper Tom Starke has joined from Hoffenheim, Dante from Borussia Monchengladbach and Xherdan Shaqiri from FC Basel.