The 28-year old Scotland international's contract ends in six months and it is believed that Toronto director Mo Johnston, a former Scotland player himself, is keen to bring him to MLS.
Kyle has admitted he wants to have another crack at the highest possible level with the English Championship in mind but the fact that Toronto may be able to double his wage bodes well for a potential switch.
But Kyle said last month that he was more likely to return to England to try and prove himself.
"I've got a short-term deal at Kilmarnock and, if I do well for Scotland, people will obviously be watching and I could maybe put myself in the shop window to go somewhere else," he said in November.
"I'm a player who wants to play at the highest possible level I can and I want to win things and achieve things. I've got that drive and ambition back. If I can do well for Scotland, that's a great step and an added boost.
"I know that I had a bad time at Coventry in the Championship and I would like to get back there and prove that I was good enough. I'd like to go back there and prove a point and prove to myself that I am capable of going down to the Championship and scoring goals."