Helan had two spells on loan with the Owls last season, initially joining on a month-long deal in November before returning for a second spell in January until the end of the campaign.
The 21-year-old impressed during his time at Hillsborough and boss Dave Jones is keen to sign him on a permanent basis.
However, Wednesday face competition from Wolves with Kenny Jackett an admirer of the Frenchman.
Wolves are thought to be in the market for a new left-sided winger with Bakary Sako strongly linked with a move to Fulham.
City signed Helan in 2009 from French club Rennes and he was highly-regarded at the Etihad, but he has been unable to break into their star-studded line-up.
Helan has made just one first-team appearance for City and they are thought to be willing to let him leave for the right offer.