Moreno is a left back similar to Barcelona's Jordi Alba. He gives depth to the team, attacks at will but could improve his game when defending.
He has scored two goals this season and been utilized as winger by head coach Unan Emery in recent weeks.
The 21-year-old, who has two caps for Spain, is being considered as a long-term replacement for Gael Clichy at the Etihad Stadium.
City has sent scouting delegations to a handful of Sevilla games towards the end of last year and over the past fortnight, with sporting director Txiki Begiristain and manager Manuel Pellegrini both big fans of the fullback.
Moreno has been heavily linked to Napoli in recent weeks, with Sevilla said to have turned down an offer from the Italian outfit on Monday as the club wants to keep hold of the youngster until at least the end of the season. Real Madrid and Chelsea are also thought to be keeping tabs on the defender.
However City, which has a strong relationship with Sevilla following the signings of Jesus Navas and Alvaro Negredo this summer, is confident over a move should it choose to pursue Moreno.
The Andalusian outfit values Moreno, who is close to both Negredo and Navas having come through Sevilla's youth ranks, at between 20-25 million euros.
City has been linked with a move for Southampton youngster Luke Shaw, but Goal understands that Chelsea is leading the race for the teenager.
Southampton has slapped a 25 million pound price tag on the Saints prodigy after the Blues made an inquiry for him earlier in January.