Midfielder Huws is currently on the books at Swansea but has been training with City recently while talks progressed over a possible deal.
It’s understood the club are holding out for at least £500k for the 15 year old, but it looks like the Blues aren’t prepared to pay the amount.
The case would be forwarded to a tribunal where it would be decided how much compensation the Swans are due for the wonderkid, should the negotiations reach an impasse
“We would ideally like the player to come back to us but that’s not going to happen. However, there will have to be proper compensation,” a Swans official told the People.
“The compensation procedure is something that is standard when two clubs cannot agree a fee.”
