Former Manchester City player Ray Ranson says he has made an offer to buy the Premiership club.
Ranson, who is a former City full-back, has yet to receive a response from the club's board and is currently considering making a further proposal.
Multi-millionaire Ranson, 46, is said to have made a £90m offer for the club.
City, whose chairman John Wardle is thought keen to sell, have issued a statement to the Stock Exchange saying they are in talks with possible buyers.
Ranson issued a statement to the Stock Exchange which also revealed he is yet to receive a positive response and is currently considering making a further proposal.
The statement read: "Ray Ranson can confirm that he is interested in buying the club and has, over the past couple of months, made indicative proposals to the club concerning a possible offer.
"Ray is yet to receive a positive response from the board to these indicative proposals and is currently considering making a further proposal to the board of the club.
"Ray recognises that the club is heavily indebted and his business plan is not dependent on leveraging the club further.
"Together, Ray and his partners have developed an operational plan for the club that is aimed at taking the club forward to the next level of its development, both on and off the field."
Ranson's approach for the club is backed by a UK-based financial partner. The identity of this financial partner has already been disclosed to the board.
City manager Stuart Pearce last week indicated a deal was getting closer for the club.
But his statement triggered a movement of shares that did not go down well with the Stock Market, forming the basis for City's statement this morning.
As they are currently in an Offer Period, a City spokesman will now be required to read out a short statement to the media prior to every press conference, ensuring there is no repeat.
On Monday reports claimed former Thailand prime minister Thaksin Shinawatra, who failed in a bid for Liverpool in 2004, was interested in buying City with partners from China and the Middle East.
And the club has also been linked with a buy-out from American investors.
Ranson's reported bid on Monday evening was said to cover the club's shares, loans of about £24m to major shareholders Wardle and David Makin - who own 29% share of the club - and debts to other creditors.
He is thought to have the backing of other businessmen and prepared to provide a transfer kitty of around £20m for new players.
Ranson, who also played for Birmingham, Newcastle and Reading, made over 200 appearances for City, where he started his career.
The 46-year-old multi-millionaire made his fortune from insurance and from football finance and has also invested in football analysis company Prozone.
He made two bids for Villa before the Midlands club were bought by American billionaire Randy Lerner.
If City were to change hands they would become the fifth Premiership club to be sold in the last year.
Portsmouth, Villa, West Ham and Liverpool have all been taken over by foreign investors since last summer.