As per a report in the Mirror, Manchester City have tabled a fresh bid of £50 million after seeing an initial offer for the attacker turned down.
The Belgian international was one of the standout players in the Bundesliga last season, scoring ten goals and adding a further 20 assists as Wolfsburg finished second behind Bayern Munich.
His pace, power and effectiveness in the final third makes him ideal for Premier League football and would give Manchester City something different to recent signing Raheem Sterling.
The bid is quoted at £50 million, though Wolfsburg are understood to be holding out for £57 million – a figure which would almost equal the British transfer record set by Manchester United last summer.
A six-year deal with a salary of £200,000-per-weeek is mooted in the report, making the 24-year-old one of the highest paid Belgians in world football.
As quoted by the Spanish paper AS, Wolfsburg boss Dieter Hecking has confirmed City have competition from Spanish giants Barcelona and Real Madrid for the signature of de Bruyne.
While the Catalans are currently under a transfer embargo, they can still purchase players now and there is scope for a new attacking signing if Pedro decides to leave the club this summer.