Manchester City are insisting they only want to sell Nolito amid claims Sevilla are close to agreeing a loan move for the striker.
Sportsmail reported earlier this month that City value the 30-year-old at £10million after fending off competition from Barcelona to sign him last summer and he is under contract until 2020.
'When you talk about top players you can't say that the deal is done but it's true that we have taken a step forward for Nolito to play at Sevilla,' club president Jose Castro told Cadena Ser Radio Sevilla.
'I think we are getting closer to reaching an understanding to see a player of Nolito's calibre play here after Manchester City paid €18 million for him last summer.