City, however, are willing to sell the England international who has struggled to impress following his high-profile £22million arrival from Everton last season.
Wolves boss Mick McCarthy was keen to shore up his defence by offering to take Lescott back to Molineux, where the 28-year started his career before moving to Goodison Park in 2006, only to be denied by City who are only interested in a sale.
No go: Manchester City's demands have scuppered any chance of Lescott returning to Molineux
Lescott's wages also presented McCarthy another major obstacle with Wolves not able to compromise on their strict wage policy to pay the player anywhere near his £90,000-a-week salary he earns at Eastlands.
Although Lescott would relish the opportunity to return his first club, where he made 235 appearances, it now appears highly unlikely of materialising.
Lescott admitted in October he would definitely consider going back to Molineux having fallen out of favour at Manchester City under manager Roberto Mancini.
He said: 'If the situation was right, I would always come back.
Hard times: Lescott has struggled to win over City boss Roberto Mancini
'Wolves have been a massive part of my life. I plied my trade there, I have a lot of very close friends behind the scenes and if the opportunity was there, I'd definitely come back.
'I'm a City player and I'm fully focused on them but, if the situation changed, then I'd love to play for Wolves.'
Meanwhile, long-term injury victim Michael Kightly hopes to step up his recovery bid in the New Year and return to light training in four weeks, ending a year of frustration.
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