The Argentinian forward has been strongly linked with a move to Eastlands this summer, while Atletico Madrid and Juventus have also shown an interest in acquiring the 24-year-old.
"(Manchester) City like Mauro but I don't know if he is on their wish list," Zarate's agent Giuseppe Bozzo told Corriere dello Sport.
"When I went to Spain to talk to Atletico Madrid, I discussed other players but not Mauro.
"Mauro is not on the market and has not asked for a transfer.
"He has a release clause of 25million euros and it will be difficult to sell him although in football you never know.
"But he is happy at Lazio."
Zarate contributed nine goals in 35 league appearances for Lazio last season.
The South American is under contract with the Rome club until June 2014.
Source: Team Talk
Source: Team Talk