NHL reporter Larry Brooks reported that a Kane-Rangers reunion is essentially off the table. However, he also stated that the Maple Leafs are 'intrigued' by Kane. Brooks does bring up a pertinent point with Kane though, and that is cap space.
It is probably safe to say that Kane will not be getting an offer for a multi-year deal after missing so much time and coming back from a major surgery as a 34-year-old. Similarly, he likely will not be getting paid like he's been used to in his career but even a league minimum salary would have a higher than expected cap hit. As NHL cap penalties are prorated based on the number of games left in the season, Kane's cap hit will automatically be higher than his actual salary this season assuming he does eventually sign. Not to mention the fact that most teams in the league are already up against the cap and Toronto is no exception.
Furthermore, the Leafs could probably use help more on defense than at forward. Their current forward group is the deepest its been in years and it does not necessarily have room for another defensive reliability. Especially with the way the Leafs have been giving up goals this season.