Blues are confident of striking a deal for Shakhtar Donetsk Attacking midfielder Fred in this transfer window, with the deadline set for 11pm on Wednesday night.
Manchester City will battle with Manchester rival for battling it out to sign Fred, according to reports.
Guardiola was left impressed with Fred and talks have taken place internally as to whether they make a move in the coming months.
The Shakhtar Donetsk striker, 24, is expected to impress for Brazil at the World Cup this summer.
The Daily Star Sunday claim Fred is being tracked by both Manchester clubs.
He is valued at £50million and has picked up nine yellow cards and one red from 14 games this term.
Ideally, City want all business done before the team runs out to face West Bromwich Albion at the Etihad Stadium, on deadline day.
Reports in Spain suggest that the deal for France under-21 defender Laporte is in place but just awaiting the deposit of the release clause fee of £57million – which would be a club record.
Laporte told Bilbao last week that he wanted to leave after doing a U-turn on a move to City in the summer of 2016, when Pep Guardiola first pinpointed him as a prime target.
City made Laporte their number one target for this window after ruling out a move for Virgil van Dijk when it became apparent that Southampton had not only refused to lower their summertime asking price of £60million, they had actually upped it to the £75million which Liverpool ended up paying.
City have not pursued Fred as strongly, largely because he will be ineligible in the Champions League, but if a deal cannot be sorted now they will re-assess their options in the summer.