The French midfielder is a free agent after his Lazio contract expired and expressed a desire to join City, but talks between the Blues and Dabo are believed to be over with City failing to come up with a suitable deal.
Bolton have also expressed an interest in the 29-year-old international although Dabo's advisor Willie McKay ruled out a move to the Reebok too.
“We are speaking to three clubs apart from City and Bolton,” he said.
“Ousmane is one of the best Bosman signings available in Europe this summer and he has expressed his intention to play in the Premiership.
“He did admit he fancied playing at City but now we are looking at other options and hopefully something will be sorted out in the next couple of weeks or so.”