Coutinho is firmly out of favour at Barca after losing his place in the side after joining the club from Liverpool in a £142million deal in 2018.
The Brazil international joined Bayern Munich on a season long loan deal in August but despite scoring nine goals in 32 games the club aren't interested in a permanent deal.
According to The Sun, Barca will instead offer the 27-year-old to Premier League sides Arsenal and Chelsea on either a loan or permanent basis.
The Catalans are struggling financially after being starved of income as a result of the coronavirus crisis with first team players taking a 70 per cent pay cut.
Consequently, Barca are likely to prefer a permanent deal to bring in much needed funds and that could pave the way for a third English club to enter the race to sign Coutinho.
Manchester City are in the market for an attacking midfielder with David Silva set to leave the club on a free transfer after spending the last 10 years at the club.
Coutinho could provide the same creative spark and would fit Pep Guardiola's possession-based style of football.
A fee of £75m is also unlikely to dissuade City from making a move, with the club in a healthy financial position thanks to their wealthy owners.
Coutinho will be desperate to get his career back on track and reestablish himself as one of the game's finest creative talents after stalling in recent seasons.
The former Liverpool man rose to prominence during his five seasons at Anfield but has failed to reproduce those performances in Spain and Germany.
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