The 17-year-old has risen from the Spanish youth ranks and now represents the Under-19 team, but will still be featured this season.
With Sergio Aguero confirmed he will leave Man City this summer, the Citizens are looking to strengthen the 2021-22 season.
While big names like Harry Kane and Erling Haaland are still known, The Sun reported that Man City may be looking to welcome Fernandez to England.
The report adds that the Fernandez family is English and may be ready to return to England, and City are understandably impressed with her strength and technical quality.
Fernandez was unused for the Espanyol Under-19s goalless draw with Valencia Mestalla last Saturday.