The midfielder handed in a transfer request in the summer and attracted the attention of Premiership new-boys Portsmouth.
Keegan was then reluctant to select Berkovic but the Israeli has since withdrawn his request.
Berkovic started the 3-0 defeat by today's opponents Leicester, but despite City's poor run lately, he still finds himself surplus to requirements. Now injury-hit Pompey have asked about Eyal's availability again.
"There has been an approach from Portsmouth for Eyal," admitted Keegan. "At the moment it is just an initial inquiry but we will see what develops.
"If it worked out right, Eyal needs to go. He needs to play football and I need to reduce the number of midfield players in my squad."
Keegan is also still in the market for a goalkeeper. Both Jerzy Dudek and Neil Sullivan have been ruled out so he has turned his attention to David James and Mart Poom.
Keegan said: “We want to try to bring in another keeper but only if he is the right quality at the right price."