Ozil now faces regular competition at the Bernabeu from summer arrival Luka Modric having previously been an automatic starter, and the Citizens are apparently ready to exploit that with a January bid.
Last month the Mirror claimed that Liverpool were also hoping to exploit the ex-Werder Bremen attacker’s perilous situation, while Manchester United are said to be keen on adding his attacking talents to their line up at Old Trafford.
The 24-year-old’s team-mates have previously come out in support of the German in his bid to hold down a regular spot.
Defender Sergio Ramos wore Ozil's No.10 under his own jersey with the intention to reveal the midfielder's shirt if he scored during Madrid’s 5-1 win over Deportivo La Coruna last month – an act interpreted as a sign that all is not well under coach Jose Mourinho.
Madrid slipped to 11 points behind rivals Barcelona in the Primera League table following a 1-0 defeat against Real Betis on Saturday.
Ozil started that game but was hauled off at half-time, while he failed to make it onto the pitch altogether during Madrid’s 1-1 Champions League draw with Manchester City at the Etihad Stadium last week.
The Citizens have been credited with an interest in a host of La Liga stars in recent weeks ahead of what many anticpate being a busy transfer window for Roberto Mancini. Cesc Fabregas, Sergio Busquets and Radamel Falcao have all been linked with a move to the Etihad Stadium.