The 22-year-old Belgium international arrived at Eastlands in 2014 and immediately joined Celtic on loan for the 2014/15 season.
Two more loan spells were to follow, with Galatasaray, and Sunderland last term.
And with a potential move to Girona on the cards, Denayer has revealed his preferred destination to be Lyon.
He told Sport Voetbalmagazine: “Man City are not keen on selling me, or only against unreasonable terms for potential buyers: a buy-back clause for almost the same price as the selling price.
“That means that clubs aren’t keen on signing me permanently and prefer to take me on loan. I’ve nothing against a new loan deal, but I want to choose my destination. Lyon would be the perfect place for me. An ambitious club in an attractive league.
“The club and I had already reached a personal agreement, but City are vetoing a move and are pushing me to Girona… we’ll see what’ll happen in the coming weeks. If the situation is not resolved, I will go to Girona, but not heartily.
“I would rather not join Girona. Not because I want to make it difficult for myself, but because I like to play in a team that is dominating. Not only to show myself, but also to develop myself. I have always had certain priorities in my career choices.
“Now it’s first and foremost a club that plays at the top of the league. In addition, in a pleasant city and with good supporters, who create a lot of noise at home.
“The financial aspect comes in the last place. The problem of Girona is that the club has just been promoted to the Primera Division, and in a small city. That’s not really what I’m looking for.”