Sky Sports News sources understand City are in 'advanced talks' to bring in Dzeko when the January transfer window opens for business.
However, Wolfsburg's managing director Dieter Hoeness is refused to confirm the rumours.
"There is a transfer window approaching, players will be able to change clubs during the course of January," Hoeness told Bild.
"VfL Wolfsburg is not prepared to add anything to this, nor will we be out to value any rumour.
"Edin Dzeko is a VfL Wolfsburg player, Edin Dzeko has a contract with our club."
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