Manchester City are on alert after Falcao was given the green light to quit Atletico Madrid.
Atletico are ready to let their star striker leave as a reward for delivering Champions League football to the club.
City have been heavily linked with a big-money move for the Colombian goal-machine.
But they could face competition from Monaco, who are thought to be tabling a £50million offer.
Atletico’s general manager Miguel Angel Gil Marin said: “Before the start of the season we talked with Falcao and we promised him ‘if you help us to reach the Champions League next season, Atletico will help you’.
“Every decision he will take, Atletico will be with him.”