The 31-year-old signed a season-long loan deal with the Spanish club in August and has gone on to score 10 goals in 40 games.
Santa Cruz, who is also in discussions with Brazilian side Botafogo, has now suggested that he could make his temporary switch a permanent one.
"I'm flattered by [Botafogo's] interest," he told Paraguayan media. "It's always important to be wanted by a club of such size.
"I am also having conversations with Malaga, but I am not going to renew my contract with Manchester City. I'll be a free agent."
Santa Cruz joined former Premier League champions City from Blackburn Rovers in summer 2009 for £17.5m.