The 26-year-old has nine goals and three assists in 19 Premier League games for the Cherries this season.
He has been the subject of interest from the likes of Chelsea, Liverpool, Manchester United and Tottenham, but City are the only team to have made formal contact with Bournemouth.
The Citizens have reportedly agreed to meet Semenyo's ã65m release clause, which must be activated by 10 January.
The former Bristol City wideman is set to have a medical at City after the Premier League clash with Tottenham on Wednesday.
Iraola told BBC Sport: "I think it could be the last game.
"That is my personal opinion, but there is nothing agreed and nothing signed. It is my personal opinion as I understand the market and the noise but there is nothing agreed right now.
"He, right now, is our player and I hope it continues."