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Kane, 28, has been subject to intense speculation linking him with a move to City after revealing his desire to leave Tottenham this summer.
However, Spurs chairman Daniel Levy is playing hardball over Kane’s future and slapped a £160m price tag on the Tottenham star.
City have reportedly launched a £120m transfer offer for Kane, but the addition of a player could make up the difference in valuation and push the deal through.
Silva has been linked with a transfer away from City after the Premier League champions’ £100m signing of Jack Grealish from Aston Villa.
The Athletic reports that Levy dismissed City’s offer of a player-plus-cash deal featuring the 27-year-old Portuguese star.
According to the publication, Silva would prefer a move to Spain amid interest from Atletico Madrid and Barcelona.
Silva, whose current City deal expires in 2025, has been an important first-team player under Pep Guardiola and made 45 appearances across all competitions.
But Grealish’s arrival at the Etihad could see the former Monaco man’s playing time cut in the current Premier League season.
The Athletic claimed that Silva was previously included in City’s offer for Kane earlier this summer.
City reportedly offered Tottenham the choice to pick from one of five players who wanted to leave the club.
Super-agent Jorge Mendes, who has been in Manchester this week, is believed to have thought that Spurs would take Silva in City’s part-exchange deal for Kane.
Silva has appeared to throw a wrench into the works by snubbing a transfer to Spurs as part of City’s approach.
It is believed that City are willing to improve their offer to £130m for Kane in a bid to land him before the transfer window shuts on 31st August, according to reports.
However, the Premier League champions are not expected to meet Levy’s £160m valuation for Kane.
Mendes is reportedly expected to meet with City officials as part of a stunning deal to sign Juventus superstar Cristiano Ronaldo.
Ronaldo’s future at the Italian club has remained uncertain ahead of his Juventus contract expiring in 2022.
But the 36-year-old Portuguese forward broke his silence on Instagram on Tuesday to dismiss speculation surrounding his club future.