The Premier League giants have been linked with a move for the 16-year-old Tannadice prospect, who has featured in the Scottish Premiership this season.
Brother of John Souttar, who has also attracted interest from the likes of Everton in the past as the Mirror previously reported, Harry is regarded as one for the future at Dundee United.
Already capped by Scotland at Under-17 level, the youngster plays at centre-back and has impressed for United's Under-20 outfit.
The club has become something of a hotbed for young Scottish talent in recent years with several first-team regulars moving on to big things elsewhere.
Ryan Gauld is currently on the books at Sporting Lisbon while Andrew Robertson has made a significant impact at Hull City this term.
Stuart Armstrong and Gary Mackay-Steven both moved to Celtic earlier this term while The Scotsman was among those to claim the Hoops are also keen on recruiting Nadir Ciftci this summer.
But despite the recent mass exodus of young stars from the club, it would appear that the Tannadice side could play hardball when it comes to Manchester City and any potential bid for the younger of the two Souttars.
The Evening Telegraph claims that United do not need to sell the young defender, given the recent big money deals involving the club.
It would therefore take an offer too good to refuse from City before the Arabs even consider a deal, though the Etihad club have a track record for nabbing their man when it comes to the crunch.