The Paraguay striker will be allowed to leave Eastlands after playing less than half an hour of Barclays Premier League football this season.
On the move: Cruz (right) is set to leave Eastlands in January
Wolfsburg and Werder Bremen have both been linked with a player who came to England from Bayern Munich in July 2007.
And while Santa Cruz told German reports that return to the Bundesliga would be attractive, he admitted his family were settled in England.
'Definitely, I am considering my future and I understand people in Germany may believe I am currently injured,' he told Spox.com.
'This is delusion. 'I have been fully fit since the World Cup tournament. I have no troubles, I am feeling great, training every day and physically I am stronger than I ever was before.
Old pals: Hughes signed the Paraguayan striker when he was in charge at Blackburn
'The Bundesliga is a great competition with big stadiums and good clubs. This is why I think this league is a good option. I always felt good at being in Germany.
'(But) I would not like to expect my wife and three children to move from England because they feel very much at home here. And for me it would be emotionally difficult to play for a club other than Bayern.'
Fulham boss Mark Hughes has twice signed the 29-year-old - while in charge at both Blackburn and then City - and is keen for the Paraguay international to boost his attacking options.
Sam Allardyce had also expressed an interest in taking Santa Cruz back to Blackburn, but the manager's sacking puts Rovers' interest up in the air. City will have to take a huge hit on a player they bought for £18million in June 2009.
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