However, it is understood talks have now ended, with City failing to come up with a deal to satisfy Dabo. It has now been suggested Bolton could also be interested.
"We are speaking to three clubs apart from City and Bolton," said McKay.
"Ousmane is one of the best Bosman signings available in Europe this summer and he has expressed his intention to play in the Premiership.
"He did admit he fancied playing at City but now we are looking at other options and hopefully something will be sorted out in the next couple of weeks or so."
Meanwhile, Everton and Wigan are ready to move for Nigeria hero Jay-Jay Okocha and ex-Bolton and Manchester City defender Mark Seagraves has been lined up to become the Latics' new first-team coach.