Championship play-off contenders Cardiff City released the right-back this season with manager Neil Harris seeing no future for the 21-year-old, having made just four appearances after his first-team debut back in 2017.
Pep Guardiola sees the Wales Under 21 international differently after City's scouting of the youngster, with the Etihad Stadium side ready to pounce after waiting for his contract to expire, according to WalesOnline.
The attacking full-back is also linked to League Two side Cheltenham Town, but Coxe will likely be more interested in accelerating his development with the club that produced Jadon Sancho and Phil Foden.
Coxe is still yet to make a league appearance as a senior player, having only featured this season with two starts in the FA Cup against Carlisle, as Cardiff won 3-2 via a replay.
The defender has represented Wales across multiple age groups, earning his first senior call-up to Ryan Giggs' squad in 2018 for a friendly with Mexico.
Some Bluebirds fans were surprised at Coxe's release when it was announced in February that the youngster would be leaving the club, after hype had been built-up about his potential as he rose through the academy ranks.
Following Coxe's release, Harris said: "You look at the players at 21,22 or 23 and they are still playing under-23s football, sometimes you just have to let them go and get on with their careers."
Cardiff take on Fulham in the first leg of their play-off semi-final on Monday after finishing fifth in the Championship.
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Saif
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