The 20-year-old attacking midfielder has caught the eye of City's scouts in the Championship this season, where he's been on loan at Birmingham City from West Ham.
Sir Alex Ferguson rated the prospect as one of the best Old Trafford academy gradautes he'd ever seen, but a series of run-ins at United put paid to his career under Ferguson.
United let him leave after failing to agree terms on a new contract, but he fell out of favour at Upton Park after just one nine-minute substitute cameo under Sam Allardyce.
The Hammers sent him to Birmingham City on loan, but after a difficult first few months at St Andrews, Morrison has flourished.
His performances in the middle of midfield for Lee Clark's side have impressed watching City scouts, and the report claims the defending Premier League champions have made discreet enquiries into the 20-year-old's availability this season.
At one stage Morrison was regarded as the next great English prospect, and he made a handful of appearances under Ferguson while still a teenager.
But disciplinary problems saw the United boss lose patience with Morrison and he was shipped off to West Ham at the end of last season. But a return to the Premier League could be on the cards with City.