City were given permission by Valencia to speak to the 24-year-old, with the two clubs thought to have agreed a fee of £28million.
But Chelsea are one of two other clubs who have also registered their interest in Silva and his agent, Julio Llorente, has hinted he would favour a move to Stamford Bridge instead of Eastlands.
Llorente insists that even if a deal has been struck between City and Valencia for Silva, who is currently with the Spain squad at the World Cup, his client is still free to choose his next destination.
"We're weighing up offers from three clubs and one is Chelsea," Llorente told the Daily Mail.
"If Silva doesn't want to go to City, the transfer isn't possible."
Silva has repeatedly been linked with a switch to England from cash-strapped Valencia, with Liverpool and Manchester United also named as potential suitors.