The 22-year-old has spent the last three seasons away from the Etihad on loan to the likes of Sunderland, Galatasaray and Celtic and claims that he has been close to moving to Ligue 1 outfit Lyon this summer.
The Belgian has said that City have effectively vetoed the potential transfer, however, and are instead likely to loan him to recently-promoted La Liga side Girona.
"Manchester 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," he told SportV. "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 will 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 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."
Denayer joined the City academy in 2013 and is yet to make a senior appearance for the side.