Pep Guardiola says Manchester City cannot afford to sign Wolverhampton star Ruben Neves because they have been priced out by his reported £100 million price tag.
Guardiola, who has spent more than £500 million on new players in three years at the Etihad, is a known admirer of the Portugese star and had been expected to renew his interest in the Wolves player following his failed attempt at signing Jorginho last summer.
City have been in the market for a replacement for the ageing Fernandinho, but Guardiola says the club cannot afford the fee being touted for the 21-year-old.
"A month ago, I started reading: 'Ruben Neves, £100m.' That is not going to happen, we are not going to pay £100m for a holding midfielder," Guardiola said ahead of his side's clash with Neves' Wolves.
"Of course, all departments in the club, we have in every position four or five or six options, depending on age, what we believe and, of course, the price. Our wage bill for the players is eighth or ninth or tenth in Europe, so there are eight or nine clubs where the wages are higher than what Manchester City pay. We try to be stable in everything."
Guardiola defended the club's spending over the past few seasons, which includes transfer fees of over £50 million for Kyle Walker, Aymeric Laporte, Benjamin Mendy and Riyard Mahrez, saying the club needed to transition into a younger squad.
"When we spent a lot last season, it was because the team was old, it was 30-31 years old and that's why we did it. But we cannot do it every season. We have a limit and cannot spend more so that's why we need to be careful with the players and try next season to see what we can do to improve."
He also said it is difficult for Manchester City to make an impact in the transfer market because they are directly competing with Real Madrid and Barcelona. Ajax's Frenkie De Jong has been linked with all three major clubs, but Guardiola refused to be drawn on the possibility of signing the highly-touted youngster.
"If you are the only one who want players it's easy. But if you want one and many, many clubs want him it's more complicated, especially if it's Madrid or Barcelona," he said.
"Normally when you are involved with Madrid and Barcelona you are going to lose. You have to be quicker and more efficient.
"But I'm not talking about the case of the Ajax player because he is an Ajax player. There are many players, not just one if it doesn't happen."
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