Andre Villas-Boas has joined Manuel Pellegrini in the race to sign the talented 19-year-old midfielder, who has made 10 league starts in his first senior campaign with Malaga.
Comparisons with Isco are inevitable, and the teenage starlet has already been called up to the Spain under-21 side.
The report - which carries information first published in Spanish newspaper Diario Sur - claims Malaga would be looking for at least £11m from City or Spurs in the January transfer window.
But the La Liga side are keen to keep Dardar at the club despite the interest from Spurs and City - hence the high valuation.
In 11 appearances in the league, Dardar has provided two assists as Malaga have struggled for much of the campaign so far.
City and Tottenham both suffered disappointing defeats at the weekend - Pellegrini's City falling 1-0 to Sunderland at the Stadium of Light while Spurs were shocked at home to Newcaslte.
City and Spurs sit side-by-side in the Premier League table after 11 games played, City in eighth on 19 points with Tottenham ahead in seventh on 20 points.