City manager Mark Hughes is a long-term admirer of the Paraguayan forward, who he coached during his tenure as Rovers manager.
Since making the switch to Eastlands, Hughes has been keen to bring Santa Cruz with him to City to bolster an ineffective forward line.
However, Blackburn are loathe to lose their most valuable asset, and a proven Premier League goal scorer, especially with the club struggling at the wrong end of the table.
New Rovers manager Sam Allardyce, despite being told he must sell before he can buy, does not want to offload the 27-year-old, who was brought to Blackburn for £3.8 million from Bayern Munich in 2007.
The Ewood Park club haver already rejected a £16m bid from City, and Santa Cruz claims Blackburn have now slapped a £25m price tag on his head.
That would represent a profit of £21.2m for Rovers, in the space of 18 months, but Santa Cruz believes it is putting City off, especially as they are reportedly preparing a £100m bid for AC Milan forward Kaka.
Santa Cruz said: "I thought when they offered £16m it was going to be accepted.
"Blackburn have said I will be allowed to leave for £25m. It seems the club is worried that they won't be able to find a replacement if I go, that is what is giving them doubts."
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