The report claims that Galatasaray want to add another year onto Denayer’s current loan deal with a buy-out clause option.
Galatasaray want to include a €10 million future buyout clause but have yet to receive a response from City.
The 20-year-old defender has hit the ground running at the Istanbul giants since making his debut against Atletico Madrid in the UEFA Champions League.
Denayer has started every game since but has not featured as a central defender instead he has played as a right-back forcing veteran full-back Sabri Sarıoğlu out of the team.
The Belgium international has one assist in five appearances in all competitions this season and has already established himself as a fan favourite.
Galatasaray are currently second in the Turkish Super League and have won their last three consecutive games with Denayer in the starting lineup.