Sportsmail revealed Mark Hughes' interest in the 22-year-old last month and City could pocket up to £13.5m should additional clauses be triggered.
With Ederson set to remain as Manchester City's first-choice keeper for the foreseeable future, having arrived at the Eithad for an extortionate amount of money, Gunn will look to lay his claim for a starting berth elsewhere.
Cockpit fire likely resulted 2016 EgyptAir crash that killed everyone on board
It is unusual that investigators from the country that is not leading the investigation would publicly comment on it. No report has yet been released by the committee regarding the cause of the crash.
Trial starts of technology which aims to catch drivers on the phone
Insp Jonathan Chapman, of Norfolk Roads Policing unit, said: "Any scheme which prevents this kind of behaviour is welcomed". The move comes amid increasing concerns over the risks posed by drivers using mobile phones at the wheel.
Kyle O'Quinn takes shot at Knicks after signing with Pacers
In a post on Instagram, O'Quinn made it clear that his comments were not meant to be a dig at the Knicks . O'Quinn averaged 7.1 points and 6.1 rebounds in 18.1 minutes per game for the Knicks last season.
Norwich-born Gunn, the son of Canaries legend Bryan, was an ever-present in the Championship for Norwich last season and was voted into third place by fans in the player-of-the-season stakes.
Part of the Denmark squad that reached the last-16 in Russian Federation, the 25-year-old would appear a timely addition to a side yet to bring in a defender since Virgil van Dijk's world-record move to Liverpool.
Southampton's goalkeeper position appears up for grabs with both Fraser Forster and Alex McCarthy in the frame, but the Man City shot-stopper could be a major success at St Mary's ahead of them. Hello Remi The youngster kept 15 clean sheets as he earned his first senior experience and has been capped 11 times at U21 level by England.