Sane is a top target for Bayern as they look to replace Franck Ribery and Arjen Robben, and at one point it looked as though a deal would happen with all parties happy to pursue a transfer.
However it would now appear that Sane, who has slipped down the pecking order with City, has no intention of returning to his homeland with the Bavarians, and would rather stay in the hope he could force his way into the first team.
The arrival of Riyad Mahrez, combined with the form of Raheem Sterling and Bernardo Silva, means that City have plenty of options, but Sane feels he is in with a chance of forcing his way back into the side.
It is claimed that Pep Guardiola would be willing to let him go at the right price, but would not force him out of the door if he wanted to stay, which he does.
There is also a doubt over whether Bayern could match the fee, with City holding out for as much as £100million.