It was their intention to bring the 23-year-old back to his homeland when the next transfer window opens.
City, though, have no intention of parting with a player of such promise.
Goal revealed in May, when interest from the Allianz Arena first emerged, that the Blues remain keen on tying Sane to a new contract.
With that in mind, it is understood that they will only enter into exit talks if the highly-rated forward makes it clear that he has no desire to discuss terms.
Even then, City would be looking to demand around €100m (£88m/$112m) in any transfer.
Such figures are putting Bayern off, with Hoeness telling Kicker when quizzed for an update on the Sane saga: “You have to be a bit sceptical. It is unlikely that it will work.
“It's about sums, they're insane.”
Hoeness had already conceded that “the whole package is difficult”, with Sane’s wages also needing to be taken into account.
Bayern are in the market for wingers and would like to bolster their ranks in that area.
Arjen Robben and Franck Ribery are leaving the club at the end of their respective contracts, taking vast experience and no shortage of talent with them.
Sane would help to fill the void, but he will not come cheap.
Those in Munich have made it clear that there is no chance of them sanctioning big-money signings this summer, with a cap being set on asking prices.
Hoeness said ahead of Bayern’s DFB-Pokal final success that wrapped up a domestic double for Niko Kovac’s side: “We’re not playing Monopoly here.
“We are a football club. We have reached a limit with €80 million, and I don’t think that we’ll exceed that in future transfers.”