The Manchester outlet states that the former Barcelona manager is still keen to sign Gundogan despite his recent knee injury.
The midfielder suffered a dislocated kneecap in training earlier this month, ruling him out of Euro 2016 this summer.
Gundogan had been a priority target for the incoming City boss before the injury, especially considering his current deal with Dortmund expires in 2017.
Gundogan’s fitness has been under scrutiny after the 25-year-old missed a year of football due to a back injury.
His latest injury comes off the back of another injury Gundogan picked up in March which kept him out for a month.
Gundogan has seven assists and three goals in 40 appearances for Dortmund this season.