City have been chasing Fernandez for several months and the Argentina international was on the verge of moving to the Etihad Stadium on deadline day.
Fernandez’s switch would equal the fee paid by Liverpool to Newcastle for Sweden striker Alexander Isak last year.
Enzo Maresca worked with Fernandez at Chelsea before taking charge of City in the close-season after his January exit from Stamford Bridge.
Maresca was keen to land Fernandez after the recent sale of influential World Cup winner Rodri to Barcelona, as well as the departures of fellow midfielders Bernardo Silva, Nico Gonzalez and Tijjani Reijnders.
The 25-year-old would partner England’s Elliot Anderson and Moroccan Ayyoub Bouaddi in City’s revamped central midfield.
Anderson joined for £116 million from Nottingham Forest, while Bouaddi cost £86 million to become the most expensive teenager in Premier League history.
Chelsea manager Xabi Alonso had left Fernandez out of his squad for the last two games as speculation swirled over his potential switch to City.
Fernandez, who signed for Chelsea from Benfica for £105 million in 2023, angered the Blues last season by expressing an interest in joining Real Madrid and was dropped for two matches as a result.
The polarising star was sent off in Argentina’s World Cup final defeat against Spain in July.
He also angered England fans with his provocative celebration of his country’s World Cup semi-final win over Thomas Tuchel’s men.
Fernandez has won the Uefa Conference League and the Club World Cup in his time at Chelsea. (AFP)
