The Spanish newspaper Sport stated that Gundogan has informed Barca that he will be a City player next season.
Sport goes onto state that the Germany international wants to work with Pep Guardiola who will manage City next season.
Liverpool have maintained their interest in the 25-year-old after failing to sign him over the summer. Gundogan singed a one year contract extension at the start of the season however, has turned down (Bild) his club’s latest contract offer.
Manchester United also had an offer for Gundogan turned down at the start of the season according to the Daily Star.
Gundogan has six assists and three goals in 32 appearances for Dortmund this season.
Dortmund sit in second place in the Bundesliga with 48 points in 21 games. The Bundesliga giants take on Porto in the UEFA Champions league next week.