As it stands, City will be unable to play Champions League football until the 2022-23 season having breached rules in relation to Financial Fair Play.
According to Sport/Foot, though, the 28-year-old is currently weighing up his future at the Etihad Stadium as he is concerned by the prospect of missing out on two years of European action.
The report suggests that the Belgian will not be committing to an extension until City learn the outcome of their appeal, which was submitted at the end of February.
De Bruyne has again been in impressive form at club level during the 2019-20 campaign, contributing nine goals and 20 assists in 35 appearances in all competitions.
Real Madrid have recently been credited with an interest in the attacker.