The Daily Mail says Tottenham are some distance away from agreeing the financial package but are exploring a loan with view to a permanent deal.
City are reluctant to subsidise any deal but Adebayor's recent behaviour may change their mind.
Adebayor prefers a return to Spain and Real Madrid. He said: "If Mourinho called me right now, I would catch the first plane out to Los Angeles and if I could play three or four years in Madrid and I would retire with the club. I do not want find another exit other than to return to Real Madrid."