According to the News of the World, City are prepared to allow the former Arsenal targetman to leave if a permanent deal can be done with either of the Serie A giants Juve or Milan.
Adebayor has his agent scouting Europe for potential destinations, but his £130,000-a-week wages are making loan deals the most viable option, with an ambitious bid believed to be on the table from Olympique Marseille.
The Togo international has been told if he stays at City he is likely to play next season, but boss Roberto Mancini desperately needs to cut down his 38-man squad to comply with new Premier League regulations that allow a maximum of 25 players.
The 26-year-old cost £25 million last summer and so far there has been no interest from English clubs for the striker who scored just 14 goals.
The Eastlands club are expected to announce the signing of Inter Milan striker Mario Balotelli this week, which would see Adebayor fall down the pecking order.