Dzeko has let his intentions known that he would be fine with a transfer to Bayern Munich after agreeing to terms with the Bundesliga giants, ESPN Soccernet reports. BiH media outlets are also reporting that City have struck a deal with Bayern. They are reporting that he has been sold for around 25 million Euros.
Gareth Barry has been ruled out of Euro 2012.
The City midfielder has a muscle tear in his lower abdomen, sustained during England's 1-0 victory over Norway at the weekend.
Gareth, one of the Blues' best players during the 2011/12 campaign, underwent a scan on Monday and the injury was confirmed as being severe enough to rule him out of the tournament.
England manager Roy Hodgson said: "I’m very disappointed to lose Gareth, not only was he a member of my original 23-man squad but he has featured prominently in the England team over the last few years."
Owen Hargreaves leads the list of players released by Manchester City following the end of the 2011/12 season.
Gai Assulin, who signed for City in December 2010, also leaves the club. The Israeli midfielder made no senior appearances for City but did feature for the Elite Development Side, scoring in the comprehensive win over United in February. He also gained valuable experience on loan at Brighton towards the end of 2011/12.
Also leaving City are midfielder Ahmed Benali, who spent some time on loan at Rochdale last season and fellow Academy graduate Sean Tse.
Portsmouth have signed two Manchester City youngsters on loan for a month, subject to Premier League clearance.
Forward Luca Scapuzzi and central defender Karim Rekik both come highly rated from Roberto Mancini's Premier League title chasers.
Rekik, 17, joined City in the summer after coming through the youth system at Feyenoord. Scapuzzi, 20, joined City from Italian side Portogruaro last summer, signing a three-year deal.
Carlos Tevez lasted just 45 minutes as the Argentine striker played his first match for Manchester City since his infamous fall-out with manager Roberto Mancini.
The 27-year-old started in the behind-closed doors reserves clash against Preston North End at City's Carrington HQ on Tuesday afternoon before he made way after the interval, being replaced by youngster Jordi Hiwula.
On-loan Manchester City striker John Guidetti has earned a first senior call up for Sweden after scoring 18 goals in 17 games for Feyenoord this season.
The 19-year-old has become a cult figure in Rotterdam with Feyenoord fans launching a campaign to keep the striker beyond the end of this season.
He will now get a chance to build a reputation with fans in his homeland with a place in the squad for next week's match against Croatia.
Abdul Razak and Gai Assulin have joined Brighton and Hove Albion on loan.
The Seagulls, managed by former Chelsea and Spurs star Gus Poyet, are just two points off the play-off positions and now have two promising Blues to help in their quest for a first stab at the Premier League.
Assulin has recently returned to action after an injury that prevented him from joining Barnsley on loan last November, and his deal sees him join Brighton until 19 March.
Uefa is awaiting the official report from Manchester City's Europa League victory at Porto before deciding whether to act on the club's complaint that Mario Balotelli was racially abused by a section of the home support.
A Uefa spokesman said: "We are aware of Manchester City's claims and we are still waiting for the official report from the match delegate. That usually arrives one or two days after the match. The procedure then is if something like this is included in the report, then our disciplinary unit will have a look at it and decided if a case needs to be opened."
Here you have a player whose ego and wallet were indulged in equal measure – to some tune as well – and was the focal point and heart of a side that won the FA Cup (with Tevez himself lifting the famous old trophy) with City now find themselves legitimately challenging for the Premier League (the most high profile, and possibly the best league in the world) and look to be a fixture in the Champions League. Yet if this is still not enough what could serve to satisfy?
Still, City were hardly shot-shy during the game. They attempted 21 shots (12 inside and nine outside the area), but nine were off target and ten were blocked by an Everton side who also made 19 interceptions and 38 clearances (15 of which were effective).