Kelly was sold for a club record fee to the Cherries in May 2019 but more money could still find its way to Ashton Gate if a transfer pays off.
The report states City were content to sell as the deal to take him to the Vitality Stadium was ‘lucrative’ and ‘beneficial’ to their long-term future.
He was bought for a reported fee of £13m by the Dorset club but that could rise to £20m dependent on fulfilling requirements of the deal.
But if he is sold, where City wouldn’t gain money on perhaps an England call-up or a certain number of top-flight appearances, they would get on the sell-on-fee.
It is not understood how much would be gained or what percentage there is on the deal however any money would be welcomed on a player they nurtured.
Various media reports say that Newcastle United hold a strong interest in the Bristol-born defender but Bournemouth aren’t keen to sell.
Newcastle want to recruit players that will help them stay up in the short-term future before making a platform for success following their Saudi Arabian takeover.
Kelly worked with Howe for one season but that was the same campaign that Bournemouth were relegated from the division, with the defender making eight top flight appearances.
Lloyd’s current club Bournemouth though want to return to the Premier League after missing out on an immediate return last season.
They were in the Premier League for five seasons and are exactly where they need to be for a return.
Under Scott Parker’s stewardship they are second in the table, one game short of the halfway point of the campaign.
The centre-back has become a pivotal player, making 18 appearances in the division this season, with Bournemouth’s recent slump in form linked to the absence of Kelly.