Pep Guardiola smashed the club's record in the summer to bring in Riyad Mahrez from Leicester in a £60m deal, but may need to do it once more.
Ndombele, 21, was in imperious form when Lyon stunned City in the Champions League last month, in a 2-1 win.
And it would appear his performance has caught the eye of Guardiola.
However, the Star claim Lyon have hit back at the City chief, demanding at least £70m for their star midfielder.
Guardiola was considering a swoop for the Frenchman in the summer, after missing out on Jorginho to Chelsea.
Ndombele only joined Lyon permanently this summer, having spent 2017-18 on loan from Amiens.
All in all, Ndombele made 36 Ligue 1 appearances for the French giants last term – adding a further ten appearances in all competitions this term.
Man City are hoping to land the France youngster as a long-term replacement for 33-year-old Fernandinho.
Guardiola has also been linked with Ajax's Frenkie De Jong and Wolves star Ruben Neves – both 21.
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