However, the 25-year-old insists his focus is on the World Cup, saying he will leave negotiations to his representatives, one of whom is former Arsenal midfielder Gilberto Silva.
He said: “As far as negotiations go, I am only [focused] on the World Cup. You just think about that, forget about other things. My agents are taking care of it.”
On the interest from the Manchester clubs, he said: “It is an honour to have the attention of the great coaches of Europe.”
City were believed to be keen on signing Fred in January as a long-term replacement for Fernandinho, but have now turned their attention to Napoli midfielder Jorginho.