The 33-year-old playmaker is now in the final year of his contract with City, and with no extension secured as yet, the Belgium international has caught the attention of clubs in the financially robust Saudi Pro League.
Clubs in the Middle East have signed several top-class players in recent seasons, including Karim Benzema, N'Golo Kante, Fabinho, Riyad Mahrez and, of course, Cristiano Ronaldo.
The Saudi Arabian Football Federation are looking to bring in international players who would accelerate the growth of their domestic league and have been linked with the likes of Mohamed Salah, Ederson and De Bruyne for several weeks.
While De Bruyne refused to rule out the possibility of moving to the Middle East this summer, it would now appear that he is set to remain in Manchester for the upcoming season.
Al-Ittihad abandon De Bruyne pursuit
According to transfer expert Rudy Galetti, Al-Ittihad, who had signalled their interest in the Belgian, are stepping back from the deal having been deterred by Manchester City's fee demands.
The report adds that the PIF-owned side saw their £25m bid knocked back by the Citizens, who are said to only be willing to consider offers in the region of £50m for their star midfielder.
It is understood that City are not actively looking to part ways with their club captain and have refused to lower their asking, despite his contractual situation.
This has led Al-Ittihad to reconsider their pursuit of the Belgian, and having brought in Houssem Aouar a couple of weeks ago, they are expected to now shift their focus to strengthening other areas.
De Bruyne could reemerge on their recruitment radar in 2025 if he continues to move towards free agency.
Transfer activity expected at City before window shuts
Pep Guardiola's side have been fairly quiet in the offseason, with Savinho being the only new arrival at the Etihad Stadium so far this summer.
However, there is still plenty of time for that to change, as there have been rumours of further additions in the pipeline, as well as several possible departures.
In terms of potential signings, Paris Saint-Germain shot-stopper Gianluigi Donnarumma is rumoured to be in talks with City as a potential replacement for Ederson.
The Citizens are also said to be keeping an eye on Euro 2024 winner Dani Olmo, who is on the radar of Guardiola's previous employers Barcelona.
As for possible departures, Kalvin Phillips and Julian Alvarez are believed to have made the club aware that they are looking for a move away from the Eithad in search of regular playing time this summer.