The Daily Mail says City were confident of clinching a £24million earlier this week, though Eastlands boss Roberto Mancini voiced his frustration that clubs raise the price they put on players once the Barclays Premier League billionaires show interest in players.
"At this moment there are contacts with Manchester City, but we must find an agreement that satisfies both us and them,' said the San Siro chief.
"Robert Mancini says that we raised the price? No, we ask what we think is right - nothing exaggerated. However, we are evaluating other offers.
"We are looking at offers, but there is no final decision on my part. Everyone is playing their part and Mancini says what is right to look after the interests of his club."