Palermo president Maurizio Zamparini claims that Arsenal and City are interested in the 21-year-old, along with a number of other clubs.
"I have asked Iachini not to play Dybala in these last few games," he said.
"It's possible that in the next eight to 10 days we will sell the player, and I want to avoid injuries in this very delicate phase.
"There is strong interest in him. In Italy there's Juventus, Inter and Milan.
"Meanwhile, in Europe there's Paris St Germain and Arsenal, as well as Manchester City who would like to try and get him but must sell first for Financial Fair Play."