The Eastlands boss also claimed that Inter Milan president Massimo Moratti was 'fascinated' by Carlos Tevez, but insisted the City captain was going nowhere.
Edin shoulders above the rest: Wolfsburg's Edin Dzeko (left) is valued by his club at more than £30m
Sportsmail understandsthat there is significant progress in the pursuit of Dzeko, with the Bosnia and Herzegovina striker's agent flying into England for talks. However interest from Juventus and Real Madrid means Mancini remains cautious.
'I think when there is a player likeDzeko many clubs want him,' he told Sky Italia. 'We have to wait andsee what happens in January. Nothing is certain, but nothing isimpossible in football.
'Dzeko is a player everyone likes. He is experienced, has been scoring and winning for quite a while, even if he's only 24.
Come and get me: Wolfsburg striker Edin Dzeko is wanted by a host of clubs, but Manchester City are leading the chase
'But there are many good players, (Newcastle United's) Andy Carroll, for example. Carrol is a 20-year-old.He has great qualities and potential. And everyone wants the best players.
'I don't like to waste money. This iswhy with City we aim for top players, because those are the ones you need to win. But I'm not looking now for strong 30-year-olds, but for good young players to build the future of City. You have to invest on young talent.
Justa week ago, Wolfsburg were trying to scare off suitors by demanding£38m, but they have been persuaded to compromise because of Dzeko'sdesire to move.
Going nowhere: Roberto Manini revealed Inter's interest in Carlos Tevez but insisted the Argentine is staying put
Sportsmail revealedbefore Christmas, that the 24-year-old took the extraordinary step ofwriting to City confirming his interest back in August.
Mancini has implored the board atEastlands to do all they can to sign a player he feels could make thedifference between winning the Barclays Premier League and finishing inthe top four.
Such asigning could impress Tevez, whose future still remains in some doubtdespite climbing down from his demands to leave Eastlands earlier thismonth. And Mancini suggested his old side Inter would be first in lineif the 26-year-old was to pack his bags again.
'I believe Inter like him andMoratti has always been fascinated by Tevez. This is normal,' saidMancini. 'But the soap opera is over, Tevez will stay here. He has afour-year deal and so it will be difficult for him to leave.'
Main man: Dzeko remains a bright spark in a dismal season for Steve McClaren's VfL
Tevez did his best to put the saga inthe shade by scoring twice in the 3-1 Boxing Day win over Newcastle andMancini said: 'He scored two goals in an extraordinary game. I am happyfor him, he always makes the differences and he always fights foreverything. I am happy he scored two in a difficult game.'
The key to keeping the former Manchester United and West Ham striker may lie in how much City can achieve come the end of the season.
'It's important for us to be up there,' said Mancini. 'City have improved plenty in one year. But we still have to work harder to improve.'
Be patient: Emmanuel Adebayor is almost certainly heading for the City exit but it might not be next month
One player tipped for the exit is Emmanuel Adebayor, but Mancini said the former Arsenal striker may have to be patient.
Juventus are keen but cannot sign a non-EU player until the end of the season, while Real Madrid's interest is less concrete.
And Mancini also had words of encouragement for Mario Balotelli - signed from Inter for £23m in the summer - despite the Italy striker's difficulties in settling in England.
'He has incredible qualities,' said Mancini. 'He is 20 and needs to improve a lot. It's up to him whether or not he becomes one of the best players in the world. I hope he does.'
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