Four Premiership clubs have met the asking price for the player, and it is a straight battle between the four to meet his demands.
"He would have been more than happy to stay at Newcastle, but he wants to play as a centre-back rather than a full-back," said agent Willie McKay.
"Manchester City are one of the clubs interested and I think they are favourites to sign Distin.
"He was impressed by them in their FA Cup match at Newcastle - they play good football under Kevin Keegan and have passionate fans."