Italian news outlet FCInterNews claim the Premier League rivals could become embroiled in a bidding war as they look to snap up the 31-year-old.
Despite their 1-0 victory over City yesterday, United still face an uphill challenge to qualify for next season's Champions League.
And the Red Devils could struggle to keep hold of Spain star David de Gea this summer if Real Madrid come calling again.
Hart was stretchered off during the Manchester derby yesterday and is expected to be out for three to four weeks.
Handanovic, 31, has impressed for Inter this season and has managed 13 clean sheets from 28 games.
It's understood both United and City have scouted the Slovenia international on several occasions and are ready to lock horns for his signature.
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