O Jogo says City have given up on signing Fernandes.
City have withdrawn themselves from the battle having disagreed with the Portugal club over price. The report claims City have all but agreed to sign Fernandes for €55m plus some players. But Sporting rejected these players and went back demanding €70m for the transfer.
For what it's worth club sources said at the beginning of May that City were never interested in signing the 24-year-old.