Bayern chief Karl-Heinz Rummenigge revealed on Monday that the club were still hopeful of signing the former Schalke man.
And now Kovac has given his endorsement for the move.
He said: "He can definitely help us. Period. Exclamation mark. He has showed that in the national team and at City."
"In the 'six position', we have [Joshua] Kimmich who can play there and Thiago [Alcantara] who did a great job. We have got options. I know that there will be more to come.
"The ambitions for this season are very high. We want to defend our double and perform much better in Europe. We want to improve what was good and what was bad."