If the deal was dead, Kane would be balls deep sucking up to Spurs fans about his ‘one true home’.
Levy has never said Kane isn't for sale, Kane is for sale at a price. Levy will have a public selling price and a private one. If City do not match what Levy wants, then it is likely he will not sell.
What City will be judging, though, is what offer that doesn't match the selling point, is still good, or close enough, to tempt Levy. It is likely we already know what it is and a deal in principle has already been struck.
We need to shift one player, Bernardo, to make it happen.
This is all guesswork. I have no actual knowledge of the negotiations.