Jeff Carlisle, U.S. soccer correspondentDec 7, 2023, 11:42 PM ET
The teams are currently negotiating, but no deal has been signed, according to a source.
Steffen, 28, has been expected to leave the Citizens since last summer and has been prevented from seeing the field - either for Man City or on loan - due to a knee injury that required surgery last May.
Steffen is motivated to move stateside by a lack of playing time with Man City, having made just 21 league and cup appearances since securing a move back in 2020.
Following his $7m move to Man City in 2019, Steffen also had loan spells with Bundesliga side Fortuna Dusseldorf in 2019-20, as well as a later loan to Middlesbrough in the EFL Championship, which saw him make 45 league and cup appearances during the 2022-23 season.
A move back to the Rapids would mirror a similar move that Tim Howard made back in 2016, though Howard boasted significantly more experience at the time of his transfer to MLS. Colorado finished last in the Western Conference in 2023 and is looking to rebuild under new manager Chris Armas.
At international level, Steffen had made 29 appearances for the U.S. men's national team. Despite being a fixture during qualifying for the 2022 World Cup, Steffen was left off the squad that competed in Qatar.
The Athletic first reported the talks over a potential deal.