Manchester City are willing to walk away from a deal to sign Matheus Nunes from Wolves.
Nunes has refused to train and was subsequently left out of their squad to face Blackpool last night but Wolves want over £60m and it is understood City do not want to pay above £55m.
The Portuguese midfielder was unavailable as Gary O'Neil's side secured their first win of the season last weekend, having been given a suspension for the red card he received in the club's defeat to Brighton.
Pep Guardiola has long been an admirer of Nunes, and has began preparations to bring in midfield reinforcements after talisman Kevin De Bruyne was sidelined earlier this month.
Lucas Paqueta had emerged on the Premier League champions' radar, but his move from West Ham collapsed after it emerged he was the subject of an FA investigation regarding potential betting breaches.
Nunes joined Wolves from Sporting Lisbon just twelve months ago, with then-boss Bruno Lage signing him for a club-record £42m fee.
The Portugal international would go on to make 35 Premier League appearances during his maiden campaign as the East Midlands club battled back from a slump that saw them bottom heading into the World Cup break to finish 13th.
Meanwhile City are also due to make decisions on James McAtee and Cole Palmer today as both are attracting interest from several clubs.