“We like Michu a lot”, confessed Granada sporting director Juan Carlos Cordero to Spanish paper Marca.
Swansea, who are keen to sell the 29-year-old, have made no agreement with the club but Granada have confirmed they have spoken with the Spaniard and his agent.
Michu had an impressive first season in the Premier League in 2012/13, scoring 18 goals following his £2m move from Rayo Vallecano.
However his second season was interrupted by injury and he only scored 5 goals in 25 games.
In 2014/15 he was sent out on loan to Napoli, where he failed to score for the club, garnering an unimpressive WhoScored rating of 6.54 over just 5 games in Serie A and the Europa League.
Check out Michu's statistics over the past four seasons via his player history page