Nwakali's older brother Allwell confirmed that an offer from Brendan Rodgers' team for the Nigerian defensive midfielder was rejected by City last week.
"Celtic wanted to sign Chidiebere last week, but the club gave them a negative response," he said.
The 19-year-old, who spent last season on loan at Norwegian club IK Start, is wanted on loan by the Bhoys but it appears unlikely he will join City academy teammate Patrick Roberts at Parkhead.
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