Despite having arguably the best squad in the Premier League, media reports – as always – are linking Manchester City to some of the biggest names in world football. As we all know, City owner Sheikh Mansourhas already invested millions upon millions into the Citizens to get them where they are today. In fact, Manchester City recently overtook bitter rivals Manchester United in the top European clubs ranking – a move that sees the Blues move up to 5th and United drop to 6th.

City’s most common line-up so far this season, based upon appearances from the start of matches, is:

Hart

Zabaleta, Kompany, Nastasic, Kolarov

Yaya Toure, Fernandinho

Navas, Nasri, Milner

Negredo

However, this line-up excludes key players, such as David Silva and Sergio Aguero, because of injuries. In fact, Demichelis, Jovetic, Rodwell and Richards have all made less than 10 appearances so far in the Premier League this season because of extensive or on-going injuries.

This is, perhaps, the reason why media speculation has linked the Blues to several defenders over the festive period; especially since all of Manchester City’s first team defenders – Zabaleta, Richards, Kompany, Nastasic, Lescott, Demichelis, Clichy and Kolarov have been injured at some point this season.

So, the big question is – who are the proposed transfer targets?

The first two are Porto pair Eliaquim Mangala and Nicolas Otamendi, who have both been observed extensively by City's scouting team. However, City, who are keen to keep spending to a minimum, have had indications that both players would cost far beyond what City are willing to pay. In fact, reports suggest that Mangala’s buy-out clause in his current contract is worth £38 million. The duo are 22 and 25 years old respectively, and have accumulated a combined 10 appearances from 14 games this term in the Portugese Liga.

Nicolas Otamendi from FC Porto

Speaking of the Premier League, Mangala stated that the Premier League is “the most beautiful league in the world”, adding that “the game is intense, it is fast and everyone is giving his very best.”

FC Porto's Eliaquim Mangala

Instead, Manuel Pellegrini is set to go head-to-head with Jose Mourinho and Chelsea in an attempt to lure 19-year-old Saint-Etienne sensation Kurt Zouma to the Etihad Stadium. The defender is valued at around £10 million.

The Frenchman, who is presently banned until February after breaking Sochaux midfielder Thomas Guerbert’s leg in November, has been tracked by City’s chief scout Gary Worthington and is seen as a cheaper alternative to either of Porto’s defenders.

Kurt Zouma of Saint-Etienne

Furthermore, Goal.com have reported that Benfica midfielder Nemanja Matic has been looked at as a potential signing in recent weeks, with scout Rob Newman having repeatedly watched the Serb.

The 25-year-old, who joined Benfica as part of David Luiz's move to Chelsea in 2011, has been favoured with a return to Stamford Bridge in January, and City officials have been made aware of the west Londoners' firm interest in the midfielder.

Chelsea star Ramires, who himself played for Benfica, has backed the Serbia international to be a success should he return to London, stating:

“If it depends on me, then I would sign Matic on January 1st. I’m convinced with him in the team, he would help us to obtain our objectives.”

SL Benfica midfielder Nemanja Matic

However, City also have a good relationship with Benfica after signing Javi Garcia from them in August 2012, and believe that the Spaniard, who hasn’t started a Premier League game for City since their 1-0 defeat to Sunderland around 2 months ago, could be offered in part-exchange in a possible move for Matic.

With City’s only dedicated central midfielders being Yaya Toure, Fernandinho, Jack Rodwell and Garcia himself, a swap-deal looks unlikely, especially since Benfica are expected to want a straight cash deal.

While Pellegrini has made it clear that strengthening his defence is a priority in the January window, Joleon Lescott has been cited as a candidate to leave the club. The 30-year old England centre-back has been linked to clubs across the globe, with fellow Premer League side Spurs and ex-manager Roberto Mancini’s Galatasaray in the running. Alan Pardew’s Newcastle and rich Ligue 1 side AS Monaco are also keen. However, with four trophies still up for grabs, it is difficult to see Pellegrini allowing any player to leave that will weaken his squad. But with 2014 being World Cup year, it is understandable why fringe players like Lescott want to leave.

Pellegrini recently commented on Lescott’s future, and when asked by reporters if Lescott would depart the Etihad for good in January, the Chilean said: "Not for the moment.

Blues defender Joleon Lescott

"Joleon Lescott is a very important player for us. He finishes his contract in June. We will see what happens in the future. At this moment we are not considering (a loan move). We will see in the future in the transfer window."

Meanwhile, Manchester City have officially signed Malmo FF striker Zacharias Faour. The 15 year-old striker had already committed to a deal with City after impressing in close-season trials back in June. Chelsea, Real Madrid, Liverpool and Juventus were all interested inthe Swedish striker, who has already been likened to compatriot Zlatan Ibrahimovic.

City's new youth signing Zacharias Faour

The two sides agreed upon a development fee worth around £400,000, though sources indicate that a series of add-ons could take the deal well past £1 million should he be a success at the Etihad Stadium, which is likely considering the fact that he is already considered good enough to go straight into City's Elite Development squad, which is managed Patrick Vieira, and has been claimed to be “large, technically gifted, good at receiving the ball and is a true goalscorer” by his agent, Hasan Cetinkaya.

Another of City’s young Swedish talents is John Guidetti, who has also been likened to PSG forward Ibrahimovic, but the 21-year old has been subject to ongoing virus and injury issues. Hence, Guidetti has failed to make a single league appearance fr City this season. Therefore, Pellegrini, who tried to loan Guidetti to Malaga during his time in charge of the La Liga side, could loan his young striker out, as game time is limited, with Sergio Aguero, Alvaro Negredo, Edin Dzeko and Stevan Jovetic ahead of him in the pecking order.

He previously benefited from being sent out on loan to Dutch outfit Feyenoord for the 2011-12 season, netting 20 times in 23 fixtures. It now appears that teams like West Ham and Stoke are willing to provide him with some vital Premier League experience, as they lead the chase to sign him on a temporary basis.

Manchester City EDS striker John Guidetti