I was always under the impression, and we were told by the transfer team at the CFA open day a few years ago, City always have at least 3 players they are after for any one position. If the first choice player/transfer target fails to materialize, City move on to the next player.
So, giving City the benefit of my wavering doubt on signing Kane, it could still happen, as City still seem to be after Kane, with no sign of City announcing they've pulled out of the Kane transfer attempt, and there's no other player via any media source being linked with City atm.