The Brazilian, whose current deal is understood to contain an £85m release clause, is believed to be eager to seek out a new challenge following his two-season stint at the London Stadium.
Paqueta was on the verge of joining City last summer, but the FA's investigation into suspicious betting activity disrupted the transfer. However, Pep Guardiola has maintained his interest in the playmaker.
Despite ongoing suggestions of an impending resolution, the FA has refrained from disclosing the exact timeline of the investigation.
The 26-year-old has denied any wrongdoing pertaining to the allegations around bookings he has received and cooperated with investigators by granting them access to his phone in October last year.
City to sign Paqueta in the summer?Provided the FA does not take further action, Man City will again look to acquire the Brazilian's services in the summer after learning that his £85m release clause will become effective in June, according to The Athletic.
The report adds that the reigning Premier League champions have been admirers of Paqueta since his time at Lyon and have been in frequent contact with his representatives in recent months.
It is also understood that personal terms are unlikely to pose an issue as City remain Paqueta's preferred destination, and negotiations have advanced significantly since last summer.
The Citizens are expected to try and bolster their midfield in the transfer season, with the likes of Bernardo Silva and Kalvin Phillips being linked with moves away from the
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