Real Madrid and Barcelona have expressed an interest in signing Nicolas Otamendi, according to the Manchester City player's agent.
The 29-year-old completed a £31.5m move to the Etihad Stadium from Valencia in August 2015 and has made 78 appearances for the Citizens to date.
Martin Sendoa told Radio Continental: "Pepe is leaving Real Madrid and Otamendi fits the profile they are looking for. Jorge Mendes (Cristiano Ronaldo's agent) is also managing Otamendi in Europe."
Spanish newspaper La Vanguardia, meanwhile, quoted Sendoa as saying: "Barcelona have also followed him since he was at Valencia. Nico is happy at Manchester City. But who wouldn't like to play at Real Madrid? It's the biggest club in the world."
Otamendi will have three years remaining on his current Man City contract at the end of the season.
