Talks with Leicester City and the Algerian international appeared to have stalled and, having missed out on the player in the January transfer window, the Citizens could be denied once again.
Reports suggest City are still hopeful over completing a deal but the reigning Premier League champions are considering other options.
Crystal Palace forward Wilfried Zaha is believed to be a possible option, after the Ivorian international impressed at Selhurst Park when fit last season.
Chelsea star Eden Hazard has also been linked with a move from London to the Etihad but City would face serious competition from Real Madrid for the Belgian international's services.
Meanwhile. Liverpool target Nabil Fekir is also a possibility, as his move to Anfield appears to be dead and Lyon could be willing to listen to other offers for the France international.