City failed to match Leicester's valuation of the player, understood to be around USD 113 million, and talks collapsed on the final day of the January transfer window.
Leicester City boss Claude Puel believes Riyad Mahrez is in better shape than before his self-imposed Foxes exile.
Mahrez was left out of the Leicester side beaten 2-1 at Everton later Wednesday and Puel said it had been a tricky situation for both the club and the player alike.
The Algerian winger had asked to leave the Midlands club in pre-season but only Roma made a firm offer.
Claude Puel says he has unfinished business in the League Cup ahead of Leicester's quarters clash with Manchester City.
Leicester beat Burnley 1-0 in the English Premier League on Saturday, the third win in Claude Puel's sixth match in charge.
Managar Claude Puel rubbished claims that he could be sacked by Southampton after less than a year in the job.