Chelsea agreed with Fernandez's agent Javier Pastore in late May that the Argentina midfielder could leave for £120m, but set a deadline of 14 August for any bids. However, the Blues have told Fernandez's camp that the player is not for sale in this window, following the passing of last Friday's deadline without a formal offer.
Manchester City are keen to sign the 25-year-old and believe the London club still want to do a deal. The Citizens are also in advanced talks about a £85m deal for Morocco midfielder Ayyoub Bouaddi, following Rodri's move to Barcelona and Bernardo Silva's departure. Chelsea's decision to give Fernandez the captain's armband when he replaced Reece James last weekend suggests that the club is not yet willing to let him go.
Chelsea will face Fulham in their Premier League opener on Monday, and it remains to be seen whether Fernandez will be a part of the starting lineup.