Manchester City will offer Quinton Fortune the two-year deal he is looking for in an attempt to entice the South African to Eastlands.
Fortune was released by Manchester United at the end of the season and the 29-year-old had been expected to join Scottish Premier League champions Celtic.
However, after the deal initially stalled while Celtic assessed the results of some previous scans on Fortune's knee, it has now collapsed altogether as the Glasgow outfit are not willing to offer the utility man any more than a one-year contract.