The club has launched a consultation exercise with fans and local residents ahead of putting in a planning application by the end of this year.
Laing O’Rourke is believed to be lined-up as construction partner.
The contractor is currently working with the club on its regeneration plans in Beswick.
The capacity of the Etihad Stadium is currently around 47,500.
The two proposed options are to undertake the expansion of the South Stand alone (phase 1), to increase matchday capacity to around 54,000, or to expand both the South and North Stands at the same time (phases 1 and 2), to increase matchday capacity to about 60,000.
It is the Club’s current intention to first proceed with the development of the South Stand.
But a phased or concurrent approach – pursuing the additional construction of an extension to the North Stand – remains a possibility.
This proposed expansion of would allow the club to introduce a new Seasoncard for £299.
The questionnaire also asks fans of both Manchester City and other football clubs for their views on the possible relocation of visiting fans.
Pete Bradshaw, Head of Infrastructure & Corporate Responsibility; said: “Manchester City Football Club strives to provide its supporters and visiting fans with one of the best possible matchday experiences in the Premier League and European football.
“Games are selling out frequently prior to going on open sale and there is rising demand from supporters for more season tickets, matchday tickets and premium seating. This is why we are considering these expansion proposals.
“We will be in touch with every fan who would be potentially affected by the changes in phase 1, and we encourage fans, residents and anyone who has a point of view, to visit the exhibition in person or online and tell us what they think.”
For the online survey click here