The talented winger, who has produced two man of the match displays in his last two visits to the Brandywell, is out of contract at the end of the season.
City’s Chief Executive Sean Barrett confirmed that Derry has made contact with Dundalk and admitted they would try to get Duffy signed up during next month’s transfer window if possible.
“Look, Michael is a talented player and he’s the type of player Derry City want,” insisted Barrett.
“Because Michael is out of contract at the end of the season, we are entitled to make an approach to possibly sign him for next season, because of that we contacted Dundalk and told them that we are going to approach their player.
“If we get a chance to sign Michael during the transfer window next month, then that would be fantastic, but our plan has always been about next season in terms of Michael.”
Duffy has been in sparkling form this season for Stephen Kenny’s side having netted nine goals this year and collected the Airtricity/Soccer Writers’ Association of Ireland player of the month for April.
The 23-year-old, who had Luton Town representatives watching him at the Brandywell on Friday night, seems to have found his feet and has been in sparking form this campaign.
Barrett also confirmed that the Candy Stripes are keeping an eye on Patrick McEleney’s situation at Oldham Athletic.
It’s believed that both Dundalk and Shamrock Rovers are lining up a move for McEleney, who looks set to be leaving Boundary Park this summer.
“Patrick is another top quality local player, but he’s an Oldham Athletic player. If that changes, then yes we’ll be interested in bringing him back to the Brandywell.”