The Brazilian is a hot item this winter after a poor start in Serie A.
The 26-year-old only moved from Aston Villa to Juve for a lot of money in the summer.
But he has made nine Serie A appearances in the first half of the season, leaving Juve willing to cash in on him.
Italian newspaper Gazzetta dello Sport states that Juve are ready to sign Luiz, while City are ready to make a move.
“He is playing less than we all expected, but we are talking about a strong player,” Villa sporting director Monchi recently said about Luiz to Gazzetta.
“There are guys who arrive and impose themselves, others who need time. Patience is needed, but Douglas' qualities are beyond discussion. He will become important for Juve.
“He is a playmaker and every ball that comes out of his feet has a meaning: last year he played 90% of the games for us. He was decisive.”
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