Manchester City were keen on signing Arsenal goalkeeper Bernd Leno from Bayer Leverkusen before landing Ederson.
Pep Guardiola had both goalkeepers watched extensively during his first season in charge upon realising Claudio Bravo's move from Barcelona wasn't going to work out.
A new book charting Guardiola's unprecedented success, 'Pep's City: The making of a superteam,' reveals the two-man shortlist to replace Bravo in 2017.
"They both fitted the bill," sporting director Txiki Begiristain said.
"One was more expensive to buy, the other required a higher salary.
"I left it up to the coaches to choose."
Chief executive Ferran Soriano added: "(Ederson is) cheap at the price."