Well, as others have pointed out, he's now in the last year of his contract, so he wouldn't be that expensive given that Bayern have already given strong indications that they would like to let him go. The bigger question is regarding his wages - the guesswork on how much he's paid has varied wildly over the years, but the lowest estimates put at about a 100k per week (pounds), and the highest at about 200k. If it's at the lower end of that scale, the signing becomes feasible - we've allegedly just verbally agreed a new 100k a week contract with Harry, so we're clearly trying to lock down our stars to relatively high-paying contracts that could allow for some wiggle room in terms of getting a marquee player in for, say, 125k a week (potentially) without causing a rush of agents asking for pay increases for their clients (given that said contract would only be about 25k more than what we pay Kane, and given that a lot of those clients are already being offered improved terms).
Also, playing him on the wings doesn't seem to have worked for Bayern - he impressed sporadically, as far as I can tell (and in some crunch games, too - against Dortmund, for example), but he's apparently lost a yard of pace after a couple of injuries a while back, and is at his best in the center, conducting things. He couldn't play there often at Bayern because Muller was undroppable.