City had been prepared to break their own Premier League transfer fee record with a reported bid of around £40 million. But, according to the Mirror, they have been told that Valencia will not go lower than the aforementioned figure despite their current financial problems.
The news will come as a huge blow to manager Mark Hughes who has made no secret of the fact that the 27-year-old was his top target for January after being impressed by his performance for Spain in Euro 2008.
And despite their new found wealth, it seems City will now have to turn their attentions to securing another striker if they are to climb their way back up the table in the new year.
Despite having shown an interest in a move to the Premier League, Villa himself has no influence on making the transfer happen.
Further headache for Hughes is news that Brazilian striker Robinho may not be fit for their weekend clash against West Brom.
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