The 29-year-old reported back to City's training base at the City Football Academy on Monday after spending the last few weeks on a personalised fitness programme. He had been omitted from Pep Guardiola's FIFA Club World Cup squad in June and was informed he is no longer part of the manager's long-term plans.
According to sources, both Everton and West Ham United are monitoring the situation, with a view to potentially securing a deal before the transfer window closes. City are understood to prefer a permanent transfer but are open to considering loan proposals should interest intensify late in the window.
Grealish, who joined City from Aston Villa in a British-record deal in 2021, has two years remaining on his current contract. However, opportunities under Guardiola have grown increasingly limited. He made just one Premier League start after January and was left out of the matchday squad entirely for City's final league game of last season against Fulham.
Despite the club's stance, Guardiola has not completely closed the door on Grealish featuring in the upcoming campaign, should a move fail to materialize before the deadline.
The England international is eager for regular football, with one eye firmly on securing a place in Gareth Southgate's squad for the 2026 FIFA World Cup. After two underwhelming seasons on the fringes, Grealish is believed to be open to a fresh start elsewhere in order to revive his form and career trajectory.
For now, the midfielder will continue to train with the first-team group as clubs weigh up formal approaches for a player whose talent remains clear - but whose role at City appears increasingly peripheral.
West Ham United have bolstered their attacking options with the signing of veteran striker Callum Wilson, who arrives at the London Stadium on a free transfer following his departure from Newcastle.
RB Leipzig have confirmed that multiple clubs have made formal approaches for Benjamin Sesko, amid reports that Newcastle United have submitted a 70 million pound bid for the highly sought-after striker.
Manchester City have reignited their pursuit of West Ham United's dynamic midfielder Lucas Paqueta, who has been cleared of betting-related charges, sparking a fresh transfer race, sources confirmed.
Manchester City have officially announced the signing of English goalkeeper James Trafford from Burnley on a permanent transfer.
