The Bundesliga pace-setters lured Jadon Sancho away form City last summer as the winger became concerned about the amount of first-team football he would receive at the Etihad, with the 18-year-old since going on to become a full England international and one of the most talked about young players on the continent.
Now, according to the aforementioned source, they have Foden in their sights, particularly as the fee due to City could be as low as £175,000 due to development rules.
Foden is currently in talks with his hometown club over a new deal, with the Stockport-born starlet having just 18 months left on his current contract.
However, regular first-team football in a squad full of stars is continuing to prove elusive for the youngster, who has played just 20 minutes since starting in the League Cup against Oxford in September.
The aforementioned source claims that Dortmund are "very, very interested" in the U17 World Cup winner and could offer him the one thing that City can't: regular action.
Nevertheless, with Foden a boyhood City fan and Pep Guardiola a huge fan of his talents, it is unlikely that Dortmund's interest will come to anything, though stranger things have happened.