Roberto Mancini has again been promised a huge war chest in a bid to fight for the title this season and believes the three La Liga stars can take his side to the next level - according to Spanish newspaper Marca, which has close links to the Bernabeu.
Eastlands officials are said to be already in the Spanish capital to talk business as Madrid prepare to sell off some of their expendable players for their own assault on the transfer market.
Three is the magic number: manchester City are said to be in Spain to launch an amazing treble swoop for Fernando Gago, Rafael van der Vaart and Gonzalo Higuain
Jose Mourinho will not be allowed the same mega-budget as last year, meaning players need to leave to fund moves for the likes of Benfica star Angel di Maria, Liverpool midfielder Steven Gerrard and Chelsea left back Ashley Cole.
City came close to signing tough-tackling midfielder Gago in January and have also monitored Higuain's stuttering contract talks at the Bernabeu. It seems they are now also keen on Holland playmaker Van der Vaart, who has been linked to Manchester United in recent days.
Mourinho will get a veto on the deals and Argentina international Gago established himself as a regular pick in the second half of the season, ahead of Lassana Diarra.
Deal or no deal: Jose Mourinho could block any departures from Real Madrid once he is named as the club's new boss
Argentina striker Higuain was Madrid's top scorer in La Liga but is not seen by his bosses as a 'Galactico' and talks to increase his salary have been far from satisfactory.
The 22-year-old is on just £15,000 a week and wants a deal closer to £80,000, but the latest offer put to his representatives is believed to be closed to the £50,000 mark.
Van der Vaart is another player who won over coach Manuel Pellegrini last season after starting the season without a squad number and being earmarked for the exit.
Silva lining: City have also been linked with a move for Valencia's David Silva although Real Madrid are also understood to be keen on the Spain winger
The 27-year-old proved to be a consistent performer towards the end of the season, but his future is now again in doubt as Madrid target a host of midfielders such as Di Maria, Gerrard, Valencia's David Silva and Roma captain Daniele de Rossi.
Silva, however, is another player City are reportedly chasing with Spanish daily AS claiming Manchester City chief executive Gary Cook is set to arrive in Valencia on Thursday to discuss a move for the one-time Manchester United transfer target.
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