It had been early reportedthat City were ready to bring the Porto defender and midfielder to the Etihad Stadium, with a deal thought to be possible at around £35 million.
City were understood to have a private plane ready to bring them to England, but it was later cancelled as the deal stalled.
Porto wanted a fee in excess of £40m for the pair and City had no interest in meeting that demand.
That doesn't mean their interest is completely finished with reports suggesting that City's interest could be revived in the summer.