The City manager had wanted to sign the Napoli center back in this transfer window.
He was the club's main target in defense, but it appears no deal can be done between the two clubs.
Per Ciro Venerato of Rai Sport, Guardiola has given up on the transfer, and will go for either Jose Gimenez or Jules Kounde.
City want to add a defender to play in their first choice back four as a partner for Aymeric Laporte.
They did sign Nathan Ake this summer, but he is a left footed center back who will be the backup to Laporte, not starting next to him, in Guardiola's ideal squad.