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Hazard was substituted in the second half in Valencia after he had been limping for a few minutes on the pitch.
He was then pictured with an ice pack on his right ankle, sparking fears of yet another layoff.
The Belgium forward now appears to be unlikely to face City, whom Madrid face at the Santiago Bernabeu in the first leg of the last 16.
Since joining Real Madrid from Chelsea last summer, Hazard has endured a stop-start season in Spain.
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He injured his hamstring the day before Madrid's opening fixture in August and then broke his foot in November.
Hazard made his first start in almost three months against Celta Vigo last weekend and started again at Levante, with a view to regaining sharpness before the City showdown.
ta/td