Hazard has long since been linked with a move to Spanish giants Real Madrid, but according to the aforementioned source he has emerged as City's first choice target this summer as they look to build a squad capable of building a dynasty.
In order to do so, Guardiola and City are reportedly prepared to spend £100m and pay the Belgian £300,000 per week in order to make a deal happen.
The signing would be a huge coup for City, with the 27-year-old widely considered one of the best players in the English top flight.
Hazard has so far refused to commit his future to his current employers and his considering his options after a frustrating season at Stamford Bridge.
According to reports, he is aware of the interest in him from City, who are keen on making just a couple of top-class additions to their squad this summer rather than sweeping changes.
The former Lille man was in fine form for his side on Saturday, scoring and converting a penalty to give them a 1-0 FA Cup final win over Manchester United at Wembley.