The report states that Pep Guardiola has yet to decide on the future of Denayer and that he may be allowed to leave on-loan yet again.
Denayer has already played for Scottish giants Celtic and Turkish giants Galatasaray.
Denayer established himself as a first-team regular and a fan favourite at the Istanbul giants last season and they are interested in bringing him back for another season.
The powerful defender settled in well to life in Turkey and did hint that he could remain for another season if Galatasaray reach an agreement with Manchester City.
Denayer was asked if he would consider staying at Galatasaray next season after winning the Turkish Cup to which he responded: “Galatasaray and Manchester City will have to agree on that it is not a decision I can make, they would have to agree first.”