Guidetti scored 20 goals for Feyenoord last season while on loan in Holland, impressing hugely, but he has been sidelined since the summer with a knee injury.
The 20-year-old is now back to full fitness and he returned to action this week scoring for City's development side on Monday.
City have high hopes for the Swedish international but want him to gain more first-team football from another loan spell.
Now clubs from throughout Europe are in talks with the players advisors - as they decide, along with City, where he should move.
Sky Sports understands a move to Spain is high on Guidetti's wish list and both Malaga and Sevilla are keen to offer him a loan stint in the Primera Liga.
Palermo and Roma from Italy have expressed their interest, whilst North East duo Newcastle and Sunderland could offer him the chance to remain in England.
Guidetti is expected to make a decision on his future in the next week.