Incoming City boss Pep Guardiola has reportedly already identified 20-year-old Dahoud as one of his prime summer targets, as he looks to overhaul an aging squad.
However, the current Bayern Munich coach is expected to face competition for the youngster’s signature, as United are hoping to steal a march on their city rivals and clinch his signing.
Although born in Syria, Dahoud has already represented Germany at Under-18 and Under-19 level, and after an impressive season to date in the Monchengladbach engine room, he looks a full Germany international in the making.
City witnessed him up close twice in this season’s Champions League group stage, with Dahoud performing impressively against Manuel Pellegrini’s side.
The young midfielder’s contract is due to run until 2018, and with no buyout clause present, he could be at the centre of a Manchester based bidding war.