Manchester City are preparing to make a bid for Robin van Persie by offloading super sub Edin Dzeko.
Dzeko has been given permission to speak to other clubs and his agent, Irfan Redzepagic, has made contact with German giants Bayern Munich, according to the Mirror.
Bayern are interested in Dzeko, who thrived in the Bundesliga with Wolfsburg before they sold him to City in 2010.
The Blues are willing to release the 26-year-old for around £20 million, just 18 months after splashing out £27m to sign him, the report added.
Gunners captain Van Persie is the number one target of City boss Roberto Mancini. He has just a year left on his contract and has delayed a decision until after the Euros.
City hope to save around £5m-a-year in wages if they sell Dzeko and to help fund a bid for Robin van Persie.
City are wary of reducing their net spending to help them comply with UEFA’s incoming Financial Fair Play rules.
Dzeko wants a move away from Etihad after dropping down the pecking order following Carlos Tevez’s return.
The striker, whose late equaliser set the stage for City's astonishing, title-clinching win over QPR in the final game of the season, has been urged to find another club for the sake of his career by Safet Susic, his Bosnia-Herzigovina national team coach.
“Dzeko’s situation at Manchester City cannot last for ever,” said Susic. “He knows what is best for him.”
Mancini is prepared to let Dzeko go as, despite his 19 goals in 40 appearances last season, he feels his form has been too erratic.
The Italian feels Van Persie would be much better in the role of City’s main striker and will move for the Dutch star if his contract talks with Arsenal break down, the report added.