The Manchester City boss is understood to be impressed by his ability to play out from the back — and his defensive qualities.
Manchester United have been dealt a blow in their pursuit of Jarrad Branthwaite
Old Trafford rival Erik ten Hag also wants the 22-year-old but United’s opening £35m bid was laughed off by the Toffees.
Pep is thought to be pondering a move for Branthwaite, although Everton are no longer under pressure to sell fast.
The Scousers raised £20m offloading Ben Godfrey to Atalanta and Lewis Dobbin to Aston Villa.
Everton do need to sell players to comply with Profit and Sustainability Rules but will not let them go on the cheap.
United have also started to look elsewhere for alternative transfer targets.
The Red Devils have reportedly held talks with Matthijs de Ligt's representatives ahead of a potential move.
Reports claim, though, that United are keen to sign both players and pair Branthwaite with the Dutchman in the centre of defence.
Branthwaite enjoyed a breakthrough season at Goodison Park last term after returning from a loan spell with PSV.
He scored three goals from defence in 35 Premier League appearances as the Toffees finished 15th.
Meanwhile, the defender signed a new deal through to 2027 back in October.
His performances for Sean Dyche's side also caught the attention of Gareth Southgate.
The England boss handed Branthwaite a maiden international call-up in March for the matches against Brazil and Belgium.
Although he did not feature, Branthwaite retained his place in the squad for the preliminary list of players for Euro 2024.
However, after making his debut against Bosnia & Herzegovina, he was cut from the final 26-man squad.
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