Dzeko's agent, Giacomo Petralito, said the 24-year-old striker was so desperate to leave Wolfsburg immediately he accepted City's offer, even though they were not his first choice.
"Juventus could have signed Dzeko, but he didn't want to wait until June," said Petralito. "The clubs had already reached an agreement that Edin would be allowed to move in January.
"But the absurd rules of the Italian FA prevented the move from happening. Edin would have preferred Juventus, so much so that he would have been prepared to accept less money.
"Edin was prepared to reduce his salary by £500,000 to play in Italy. But he had to leave Wolfsburg immediately, in January, and he couldn't wait until June, especially after having had an argument with the management.
"What has prevented the transfer of the player is the rule imposed in Italy about non-EU players. Juve already have one in Krasic and they could not have taken another."