This is according to the Daily Mail, who understand it’s increasingly looking likely that Stones will become the first signing of the Pep Guardiola era at the Etihad Stadium.
Stones is expected to cost around £45 million - £7 million more than the amount Chelsea bid for the England international last summer.
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If Chelsea do move for Dann this summer, however, Palace are likely to demand a cool £20 million for the 6ft 5in centre-back who turned 29 earlier this month.
It’s understood that the Blues, who are likely to be managed by Antonio Conte from the start of next season, will not pay that amount for a player with no re-sell value and would demand a lower fee before an agreement is reached.
Stones would be a huge coup for Man City
Stones, meanwhile, would be a magnificent coup for Manchester City.
Although the 21-year-old is still a little on the raw side - Sky Sports’ pundit Paul Merson blasted him, quite harshly, earlier this season for his poor decision making and positioning - he is certainly the most talented young defender in the Premier League.
Guardiola may feel that he requires another top centre-back - to partner Vincent Kompany - with Nicolas Otamendi and Eliaquim Mangala both experiencing mixed starts to their Manchester City careers.
Is John Stones worth £45m? Is Scott Dann worth £20m? Have your say by leaving a comment below.