Pep Guardiola has lost Brahim Diaz to Real Madrid and now has one of his brightest Academy prospects targeted by German clubs.
The 18-year-old, capped by Wales, has a full season left on his current deal but fresh terms have not been agreed.
Bayern Munich, Borussia Dortmund, Borussia Monchengladbach, and RB Leipzig all watched the forward play in a UEFA youth clash against Hoffenhiem earlier in the season.
And City ideally don’t want youngsters running down their contract like Spain Under-21 star Diaz.
Guardiola has included Matondo in first-team training and does not want to lose another talented youngster.
Jadon Sancho moved from City with one year remaining on his scholarship deal and has lit up the Bundesliga with Borussia Dortmund.
Matondo has been compared to the England international in terms of goals and assists in youth competitions.
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