Reports in England and Germany claimed on Wednesday night that widespread agreement had been reached between all parties, with estimates ranging from between 75 and 80 million euros for a transfer fee.
Allofs denied that was the case, however.
“There is no agreement with De Bruyne and with Manchester City,” Allofs said at a press conference on Thursday.
“We have agreed to open negotiations, and that has happened, but Kevin is still a Wolfsburg player.
“We are not in any rush to get this (transfer) through. The interests of both sides must be considered.
“If our expectations are not fulfilled, Kevin will be playing for Wolfsburg this season, and I wouldn’t mind that.
“In the end, there can only be winners from this deal and that applies also to Wolfsburg. If that is not the case, then there will be no transfer.”
Earlier, Allofs had told Sport Bild magazine that his club cannot afford to turn down such sums like perhaps Bayern Munich can, hinting that there would be a point when they would accept an offer from City.
“People do think that money does not come into it with Volkswagen (the club’s backers), but that is not the case,” he said.
“VW and we place a lot of importance on being economically sound.
“Compared to the top clubs in Europe, we have very little means at our disposal. We must also adhere to UEFA’s Financial Fair Play.
“We can’t compete with (Bayern).”
Until a suitable offer is made, however, De Bruyne will continue to be considered a Wolfsburg player, also by their coach Dieter Hecking.
“I am naming 18 players in my squad to face Schalke (on Friday night) and I expect Kevin to be one of them,” he said.