The mega-rich Premier League side were willing to pay as much as £50million for the Spanish international, who topped the scoring charts at Euro 2008.
Mark Hughes is desperate to use some of the Abu United Dhabi Group cash to land a striker of genuine world class quality, and Villa is the man at the top of his list.
However, reports in Spain suggest Valencia have decided to keep their star player for the rest of the season at least, meaning City will have to wait until the summer to land their man.
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