The talented midfielder would have proved to difficult to secure a work permit for.
Nigeria's Under-17 squad are now the subject of much interest from abroad. The Golden Eaglets won the competition recently and the likes of Victor Osimhen and Kelechi Nwakali are garnering some big interest.
The 17-year-old was the captain of the Nigeria side that dominated their age group in South America recently and impressed with his performances.
That saw West Ham and City, where his brother Chidi Nwakali is already signed on, make a move for the player but his agent has now confirmed that move is dead.
His agent Klay Ekeocha told All Nigeria Soccer:
“We are in contact with Chelsea, Udinese and Olympiakos. We have to wait and discuss with all the clubs, then, decide with the family and academy.
“Udinese made a ridiculous offer of 800,000 euros for the Most Valuable Player of the Fifa Under 17 World Cup.
“We are working hard for the player, his family and academy. City and West Ham are no longer involved because of work permit issues.
“We got in touch with Arsenal and there’s no feedback yet. ”
Nwakali therefore seems to be a difficult acquisition. In fact his brother may be at City, but he is currently farmed out to feeder club Girona in Spain.
West Ham and City would seemingly have liked to have taken him on board but there were too many complications - it is hard to see Chelsea feeling any differently.
It looks likely that Nwakali may end up playing his football elsewhere in Europe.