Inter Milan are refusing to budge from their valuation for striker Mario Balotelli.
Sky Italia says Manchester City have stepped back from the negotiating table as Inter president Massimo Moratti refuses to drop his asking price.
Moratti wants €35 million cash for Balotelli.
For their part, City are unwilling to go higher than €30 million for the striker, plus another €4 million based on appearances and success.
Need your Manchester City news fix? Click here for all City news and transfer rumours.