Espanyol have been offered the chance to take Elano on loan in January, according to the Spanish club's sport director.
Elano has fallen down the pecking order at City this season and has vented his frustration at being left out by manager Mark Hughes.
City are expected to strengthen their squad when the transfer window reopens and there has been speculation about Elano's future.
Espanyol sport director Paco Herrera has now claimed that his club is considering a loan swoop for the Brazilian.
"We have received the offer for the loan but have still not given an answer," Herrera told skysports.com.
The problem is understood to be Elano's salary, although reports in Spain suggest that Espanyol would be willing to bring in the playmaker if City help with his wages.
Lazio are also believed to be in the running for Elano's signature.