The 19-year-old defender has attracted interest from a host of top European clubs, after a number of impressive performances for the Spanish giants this campaign.
Jose Mourinho has given the Frenchman a more regular run-out at the Santiago Bernabeu in 2012/13, with his display in the recent Copa del Rey semi-final first leg clash against Barcelona - during which he headed home the equaliser in a 1-1 draw - his stand-out performance of the season so far.
Joleon Lescott is one player believed to be heading for the Etihad Stadium exit, with the England international seeing his first-team chances restricted by the form of Matija Nastasic, who has settled in well alongside Vincent Kompany at the heart of City's defence, in his debut season in the Premier League.
Varane has been identified as a potential replacement for Lescott, but with the centre-back - who can also operate in a defensive midfield role - featuring more regularly for Real Madrid this season, he might consider his future to be better served in the Spanish capital.
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