City had a bid of £100m rejected by Tottenham earlier this summer and Hoddle believes the striker's eagerness to leave will only be granted if the reigning Premier League champions add another £50million to that fee.
Speaking at a BT Sport event in London, the former Spurs and England manager believes City's hopes of offering players are part of a deal for Kane will not materialise as he believes a huge fee will be the only way the move happens.
He believes that figure could be around €150million, with City reported to be considering a fresh offer to sign 28-year-old Kane that will hit that mark.
"I would think that €150million is the level that City need to go to if they are to convince Daniel Levy to consider selling," Hoddle told
"I'm not sure whether City will go to that level as I'm sure they would want to include some players in part exchange as part of the deal, but what players would want to go in that scenario? I always felt that was not going to happen.
"I always felt the money needed to be pushed up and if they did go to £150million, that would be at a level where Daniel Levy would have to say Kane is worth that and maybe a bit more. If Grealish is worth £100million, Kane has to be worth that much more.
"As a Spurs man, I'm hoping it doesn't happen and he stays, but if Harry wants to go, then it has to be for the correct money and I think £150million would be a just figure."
Hoddle went on to suggest the stand-off between Tottenham and Kane over his future in the last few weeks has been inevitable, with confusion over when the player would report back for training and suggestions that he may have missed his return date.
"There are still three years left on Harry's contract and that was always going to make it difficult to do a deal for him this summer," added the former England boss.
"Spurs fans know what a fantastic job he has done for the club and he deserves success. If they is going to be away from Tottenham, you can't begrudge him in many ways.
"As long as the money is put back into the team and invested properly, I think the fans would understand a deal of that scale."
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