The Citizens were strongly linked with the England captain over the summer but could not come to an agreement with Spurs over a transfer fee, with the North London club thought to value their star player at £160m.
Kane has found it difficult to show his best form at club level this term, netting just once in 13 Premier League appearances, although he has scored eight times in 20 outings in all competitions.
According to El Nacional, Man City boss Pep Guardiola is still keen on the 28-year-old and views him as the perfect player to fit into his system at the Etihad Stadium.
The report claims Kane is currently leaning towards a move to Real Madrid, but Los Blancos boss Carlo Ancelotti has told the Spanish club's president Florentino Perez to instead pursue Borussia Dortmund's Erling Braut Haaland as a long-term replacement for Karim Benzema.
Kane still has two-and-a-half years left on his contract at the Tottenham Hotspur Stadium, so Antonio Conte's side remain in a strong position when it comes to the Englishman's future.