Manchester City have ended their pursuit of Leicester winger Riyad Mahrez, according to Sky sources.
City have pulled out of a potential deal to sign Mahrez after failing to agree a fee with Leicester.
Sky sources understand City made a final cash-plus-player offer worth an estimated £65m for Mahrez, which is believed to be well below Leicester's valuation of around £95m for the deal.
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Talks have now broken down between the two parties with City unwilling to increase their offer for the Algeria international.
City also pulled out an attempt to sign Alexis Sanchez earlier in the window and Sky Sports News has been told the club are unwilling to pay above what they see as market value for a player.
Mahrez attempted to push through a move to the Etihad on Tuesday after submitting a transfer request to Leicester, which he also did in May of last year.
However, the 26-year-old is now set to remain with the Foxes for the rest of the season, unless City return to negotiations in the final hours of Deadline Day.
Mahrez's efforts to leave Leicester have angered some of his team-mates at the King Power Stadium, according to Sky sources.
Sky Sports News has been told his failure to turn up for training on Tuesday, and his decision not to travel for Wednesday's game against Everton has upset a number of the Leicester squad.