I suggested that the OP should read the following documentation:
Specify Credential and Connection Information for Report Data Sources
This were the remarks made by the OP:
Prompt the user for credentials :Not possible because some users can view report with provided website user/password. He will have no idea about DB.
Store credentials: Not possible because user will see data in website as well as in report by database selected at the time of log-in. Database selection option is given at the time of log-in in website because there would be more than one database. so one report will show different data based on selected DB by the user.
Use Windows integrated security : Not possible because most of our client are not allowing use to use integrated security for database access. we need to use their provided credentials for all database access.
Use no credentials : we need to use client provided credentials for all database access. Correct me if i missed something from that article
This is my response and answer to the presented problem:
You require a user to login to your website, as soon as the user is logged in you should be able to know who this user is. This also means that you can give a user specific rights/access to your application.
So you can use the Stored Credentials and more specifically use the Integrated Security.
Type | Context for network connection | Data Source
-------------------- | -------------------------------- | -----------------
Integrated security | Impersonate the current user | For all data source types, connect using the current user account
I believe the following documentation might be exactly what you're looking for.
How to: Secure Connection Strings When Using Data Source Controls
I would strongly recommend creating a new table containing data that specifies the different access levels to then have a junction table with the user table. This will make it easy to determine which user has access to which report and allow for an easy implementatuon of the Integraded Security.