City Football Group (CFG) have been in negotiations with the Ligue 2 outfit about becoming the organisation's ninth team but the Coronavirus pandemic has put talks on ice.
Nancy's president Jacques Rousselot claimed the deal was due to be wrapped up last month and confirmed that discussions have been suspended.
It is believed that City are still keen on adding Nancy to their roster, although an ultimate decision is dependent on the financial climate.
CFG continued to extend their network of clubs late last year when announcing the purchase of Mumbai City.
City already have clubs in America, Spain, China, Japan, Uruguay and Australia. A number of those act as bases for the group's pool of 'emerging talent' players, while also serving to maximise commercial opportunities.
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