City have spent more than £70million on the likes of Sergio Aguero and Sami Nasri, but bringing in free agent Hargreaves is entirely unexpected.

Press Association Sport understands the former Manchester United midfielder, who left Old Trafford in May after three years of persistent injury problems, is in talks to make the short trip to closest rivals City.

It had been anticipated the 30-year-old, who has had extensive surgery on both knees and played just four matches in his last three seasons, would be forced to drop down a level.

Barclays Premier League side West Brom were interested in signing the former Bayern Munich player, as were npower Championship club Leicester, but it seems City are prepared to take a gamble in attempting to add some defensive solidity to a midfield which is well-stocked with creative talent.

The move has received the backing of City goalkeeper Joe Hart.

"It would be a good signing. Obviously, Owen Hargreaves has done great for Bayern Munich," said the England goalkeeper at a press conference ahead of the Euro 2012 qualifier against Bulgaria.

"He has struggled a bit since he came to Manchester United but that is not down to ability, just his fitness.

"If he can get himself fit and does sign for Manchester City, it can only be a positive.

"He was a very important England player. If he can get back to that form, obviously he would be an asset."

City will also try to trim their squad with the likes of Shaun Wright-Phillips and Craig Bellamy attracting interest from Premier League rivals, although much may depend on what agreements can be struck over wages.

Several clubs look like leaving it late to complete their summer business before the transfer window closes tomorrow night.

Arsenal manger Arsene Wenger has begun the process of spending some of the income from the sales of Cesc Fabregas to Barcelona and Nasri to City by securing the capture of Monaco'sSouth Korea captain Park Chu-Young.

A deal for Fenerbahce's Brazil left-back Andre Santos is also close to a conclusion and with Werder Bremen's Germany centre-half Per Mertesacker flying in to London for a medical it appears the Gunners are likely to continue their activity tomorrow as the clock ticks down to 11pm.

But with Mertesacker almost on board Wenger has withdrawn his interest in Bolton defender Gary Cahill.

Tottenham boss Harry Redknapp is never one to allow a deadline day to pass without a late bid or two going in but more important for Spurs may be who does not leave.

Chelsea continue to pursue playmaker Luka Modric and although Tottenham chairman Daniel Levy continues to insist the Croatia international is not for sale there could be a nervous few hours ahead at White Hart Lane.

Redknapp is keen to bring in players to bolster his squad but whether that can be done without resorting to cashing in on their prized asset remains to be seen.

He is, however, prepared to allow midfielder Wilson Palacios to leave with Stoke hoping to tie up a late deal, although the Potters' chances of signing team-mate Peter Crouch seem to have receded as he wants to stay at White Hart Lane - although there is interest from a number of clubs.

Liverpool are expected to confirm the signing of Uruguay centre-back Sebastian Coates within the next 24 hours but the club will be busier trying to offload more of their "deadwood".

Out-of-favour midfielder Joe Cole, who has yet to make the squad in four matches this season, is reportedly considering a loan move to French club Lille, David Ngog's long-running link to Bolton may eventually be settled while the future of midfielder Christian Poulsen remains unclear.

Raul Meireles has emerged as a target for Chelsea should they fail in their bid to land Modric but the Reds will not be taking back Yossi Benayoun as a makeweight in any deal, with the Israel international linked with a number of clubs as he prepares for a Stamford Bridge exit.