But they were stunned when the Toffees demanded £50million for their young star.
The fee would have smashed the record paid for an English player when Liverpool handed Newcastle £35m for Andy Carroll.
A City insider said: “Barkley was seen as one of the few homegrown English players in the world game who would improve the squad.”
Barkley, 20, has now secured his Goodison future by signing a new four-year deal.
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