The 20-year-old Sampdoria starlet has been in impressive form in Serie 'A' this season, scoring nine goals in 22 league appearances in 2012/13.
Citizens boss Roberto Mancini is believed to have sent scouts to Genoa to run the rule over the South American striker on a number of occasions as he weighs up a bid to bring him to the Etihad Stadium.
With fellow Argentinian's Sergio Aguero, Carlos Tevez and Pablo Zabaleta already at Manchester City, Icardi should find it easy to settle in a new country and culture.
However, it looks as though the reigning Premier League champions will face a fight to secure the player's signature, after De Laurentiis hinted that Napoli might renew their interest in Icardi.
"He's a potential star of the future," said the Italian. "We'll certainly hear more about him. Napoli made a move, but we also take into account certain factors which other clubs perhaps do not."
As Icardi continues to develop well in Italy with the prospect of regular first-team football, there is no guarantee he will be offered the same luxury at Manchester City or Napoli.
De Laurentiis added: "We are reflecting on our steps because to sign a player and then not give him the chance to play is the worst thing you can do."