Manchester City reportedly have no intention of paying what they perceive to be over the odds for Wolverhampton Wanderers midfielder Matheus Nunes.
Having tried and failed to sign West Ham United's Lucas Paqueta, manager Pep Guardiola has turned his attention to Nunes, a player who he has rated for a number of years.
When City initially made an offer in the region of £47m last week, there was every expectation that a resolution would eventually be found.
However, the two clubs are seemingly at an impasse, not helped by Nunes deciding to go on strike in a bid to force a transfer to the Etihad Stadium.
That development was confirmed by Wolves head coach Gary O'Neil at a press conference on Tuesday night, the Englishman hinting that he expects Nunes to remain at Molineux.
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Although the transfer window remains open for Premier League clubs until Friday night, it appears that the chances of Nunes continuing his stay in the West Midlands are increasing.
According to the Daily Mail, City are willing to walk away from negotiations if Wolves do not soften their stance.
The report suggests that the top-flight champions have no desire to pay over £55m for a player that Wolves acquired for £38m just over a year ago.
During that period, the 25-year-old has contributed just one goal and one assist in the Premier League, generally not getting anywhere close to justifying his price tag.
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Nevertheless, the Portugal international is now regarded as Wolves' most prized asset after the departure of Ruben Neves, while he has another four years on his contract.
Wolves have allegedly indicated that they will not sell Nunes for below £60m, and Guardiola and club officials may be forced to look elsewhere.
That is despite speculation of Wolves being interested in each of City pair Tommy Doyle and James McAtee, the former theoretically viewed as a replacement for Nunes.
While it has been well documented that Wolves have had issues with FFP this summer, sporting director Matt Hobbs said on Tuesday that the loan exit of Goncalo Guedes to Benfica had freed up space on the wage bill.
Darren Plant
