The Ulsterman has already turned down a permanent move to the Ricoh Arena plus one season long loan bid and has had interest from Ipswich, Watford and Newcastle.
However, City can try to get him on a 93 day emeregency loan when the loan transfer window opens in the morning.
"Possibly, maybe. I had a conversation with Sunderland about David but I can't say we were even near to doing a deal," said Chris Coleman to the CT.
"But we had a conversation about a possible loan but that's as far as it went.
"We obviously know all about the player but the one deal that suited us apparently didn't suit the player, so as far as I am concerned, unless it is resurrected, at the minute it is dead in the water.
But knowing football, stranger things have happened."