Manchester City have announced negotiations are continuing over a deal for Portsmouth striker Benjani Mwaruwari.

Reports had claimed that City had finalised a deal for the Zimbabwe striker, which has been held up since deadline day.

Portsmouth had agreed to sell their top scorer to City after sealing a deal to bring in Jermain Defoe from Tottenham Hotspur.

However, Benjani's move did not appear to be concluded before the closure of the transfer window, prompting an investigation from the Premier League.

City boss Sven Goran Eriksson admitted on Monday that he expected the issue to be resolved by Tuesday at the latest.

And, despite reports to the contrary, City have confirmed that the transfer has yet to be given the green light.

A club statement read: "Manchester City have tonight corrected press speculation that Benjani Mwaruwari has completed his transfer to the club from Portsmouth.

"Some news organisations have this evening claimed in unattributed stories that the Portsmouth striker has joined the Blues."

A spokesman added: "No deal has been completed. Manchester City remain in contact with the football authorities regarding this potential transfer."