Manchester City have pulled out of a potential deadline-day deal for Leicester's Riyad Mahrez.

Press Association Sport understands the Premier League leaders enquired about the Algeria playmaker but were put off by the Foxes' £95million valuation.

City were only willing to pay up to £60million and so ended discussions without actually submitting a formal bid.

Mahrez, for his part, submitted a transfer request last summer and his desire to leave remained unchanged.

The 26-year-old, who is contracted until 2020, could now be left frustrated with Leicester having priced him out of a move to the Etihad Stadium.

There were suggestions Leicester would consider a player-plus-cash bid, to the combined value of £95million but - for the second time this month - City were not prepared to overpay.

A fortnight ago City ended their interest in Alexis Sanchez due to the rising costs of signing the Chile forward from Arsenal. He subsequently joined Manchester United.

That prompted City to turn their attention to Mahrez, in an ongoing search for another attacker that will now likely resume in the summer.

City are understood to be disappointed with suggestions that their interest in Mahrez was a knee-jerk to the loss of Leroy Sane to injury.

Germany winger Sane faces six to seven weeks out after suffering ankle ligament damage in last weekend's FA Cup win at Cardiff.

City's withdrawal from the Mahrez talks leaves £57million record signing Aymeric Laporte as their only major incoming business of the January window.

Recruiting a centre-back was considered a top priority. Their other target areas of a forward and defensive midfielder are less urgent and can be addressed at the end of the season.

Laporte went straight into the City side for Wednesday's Premier League clash against West Brom, just a day after completing his move.