City only paid £7m for him, and it didn't really work out as they hoped, so they would probably take less, they might even write it off if it got rid of the wages, as he's clearly never going to get a look in there.
He's got two years left on his 80k deal, which we obviously can't match but city may pay some if we take him off their hands.
He's probably not going to get another contract near 80k when this one runs out when he's 30, which he probably realises.
I'm not sure how reliable this is, but I don't expect it to be far off:
https://www.spotrac.com/epl/rankings/goalkeeper/
There are like 50 keepers in the prem as starters/ backups, and only ~10 are on more than Steffen ~£4/m a year, so even if he got a starting prem move, then he's probably not going to be on more than £2m, which is around no 20 on the list. Who of them actually needs a keeper though, as well, most seem to be quite well covered?
A deal for Steffen might not be as far away as a lot of us expect?