The Ligue 1 side signed Karim Rekik from City earlier this summer and are interested in loaning Denayer too.
“We have Man City’s permission to find a club to take Jason on loan for a year. There are several clubs interested, and agreement will be reached soon.” Denayer’s agent told Sky Sports News.
The Belgium international was expected to join Galatasaray earlier this week. Denayer attended the game and was expected to complete his move to the Istanbul giants today but Galatasaray were unable to reach an agreement with City.
NTV Spor report that City were reluctant to give Galatasaray a buy-out clause option as part of the loan.
The Belgium international scored six goals and setup two assists in 44 appearances for Celtic in all competitions last season.
Galatasaray dropped into 13th place with just one just 1 point after two games following the defeat to newly promoted Osmanlıspor. The Lions take on Konyaspor next at the Konya Torku Arena in the Süper Lig.