It had been assumed there is no future for him at City after he was loaned out last season but there are now indications that new head coach Enzo Maresca is open to including him in plans for next season.
Grealish, 30, has been made aware of the situation ahead of resuming pre-season training this summer.
He must now weigh up the prospect of continuing at City - where he is under contract until 2027 - or to end ties and start fresh elsewhere.
Man City have been considering ways to change up their squad for next season in a post-Pep Guardiola era and Maresca is interested in what Grealish could bring to the squad.
It remains the case, however, that Everton are interested in making an offer to sign him permanently.
He was on loan with them last season and became an influential figure around the club.
Sources have told Flashscore that Grealish enjoyed his stay at the club and would very much consider a transfer.
He believes he could thrive and is excited by the way the club are growing - but there will be a temptation to play again at City if he can genuinely play a role in their season.
Those close to the England international insist no decision has been made, with Grealish expected to hold further discussions with Maresca when City players return for pre-season.
The former Aston Villa star is keen to establish exactly where he would fit into the new manager's plans before making a final call on his future.
Everton, meanwhile, remain hopeful that Grealish's positive experience last season could work in their favour.
Club officials believe his leadership, creativity and experience at the highest level would make him a key member of their ongoing project.
Dean Jones is a transfer news and football insider for Flashscore, since 2025. He has been a journalist on leading UK newspapers and websites over the past 20 years, establishing himself as an authoritative and trusted voice in the industry.
