Stones, 31, leaves City after ten years and 293 appearances, during which he won six Premier League titles, the Champions League, two FA Cups, five League Cups, the Club World Cup and the UEFA Super Cup.
He joined from Everton in August 2016 for £47.5m — making him the world's second most expensive defender at the time — and becomes the second major departure from City this summer alongside Bernardo Silva.
Kompany, who is in his second season as Bayern Munich's head coach, played alongside Stones at Manchester City before leaving for Burnley in 2019. The pair won the Premier League together and have maintained a strong professional relationship. Kompany has spoken warmly of Stones in recent media appearances, and Bayern's sporting director Max Eberl is understood to have authorised initial enquiries.
The German champions have a clear need at centre-back. Kim Min-jae has attracted interest from several clubs and is not guaranteed to stay, while Dayot Upamecano's future has also been the subject of speculation. A free transfer for an experienced, technically assured defender who can also operate in midfield when required offers obvious appeal, reports the Daily Mail.
Stones demonstrated that midfield versatility most memorably during City's Champions League final victory over Inter Milan in 2023, playing a hybrid role that neutralised Inter's press and created space for Phil Foden and Kevin De Bruyne. Kompany, who favours a technically demanding press-oriented system at Bayern, would likely have plans for that same adaptability.
Everton have been linked with Stones given his north-west roots and connection to his former club. Barcelona and Coventry City — the club he supported as a child growing up near Barnsley — have also been reported to hold interest. But the prospect of playing for one of Europe's dominant clubs, under a manager who understands him personally, and alongside Kane in an environment geared for Champions League competition, makes Bayern's approach the most compelling of those available to him.
Stones has 87 England caps and will travel to the World Cup this summer under head coach Thomas Tuchel.