The left-sided Italy stopper declared that he would only stay in Turin if guaranteed a first-team place, although Juve want to keep him at the Stadio delle Alpi and will only accept big money for the 23-year-old.
City have been linked with him since the arrival of Sven-Goran Eriksson as manager but a £7 million cash offer was not enough to prise him away from Claudio Ranieri.
"We have not accepted Manchester City's offer," Bianconeri chairman Giovanni Cobolli Gigli told Nesti TV. "It is not sufficient for us."
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Chiellini's agent has declared that his client wants to move to England and City - who lost star defender Sylvain Distin on a free to Portsmouth this summer - are expected to return soon with an improved offer.
The player - who can play in defence and midfield - was co-owned by Juve and Fiorentina when he left Livorno in 2004 and fully bought by the Turin club before their enforced relegation last season. He was a regular for the Italian Olympic and Under-21 teams and has been capped by the senior Azzurri.
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