Skysports.com understands Levante will take up their option to sign Felipe Caicedo before selling the striker for a large profit.
Caicedo has enjoyed an impressive season on loan at Levante from Manchester City and has weighed in with 14 goals for the Primera Liga club.
Levante can sign the Ecuador international for a fee of €1million (£868,000) and intend to exercise that option with City.
However, rather than keep the powerful forward in their squad next season, it is understood Levante will cash in by selling Caicedo in the summer.
Though he has two years left on his contract in England, City will miss out on a cash windfall, with clubs in France, Germany and Italy keen on the front-man.
Caicedo is expected to make a decision on his future after playing for Ecuador in June and he will have several clubs to choose from.