Chelsea set a deadline until 5 pm on Friday (August 14) for Man City to match their £120 million asking price for the 25-year-old.
That deadline came and went without an offer, but Man City remain attentive to his situation at Stamford Bridge, according to Sky Sports.
Fernandez can no longer leave for the aforementioned fee, agreed with his representatives, so City will likely have to pay more in order to sign him.
New manager Enzo Maresca is pushing to get a deal over the line following Rodri’s move to Barcelona for a reported £65 million.
City are also expected to sign highly rated Morocco international Ayyoub Bouaddi from Lille, although it remains to be seen whether he would go straight into the starting eleven.
Maresca started £116 million man Elliot Anderson alongside Mateo Kovacic as he side were comfortably beaten 3-0 by Arsenal in the Community Shield.