With the takeover dragging on, Ranieri has accepted an offer from Juventus to coach the fallen Italian giants on their return to Serie A next season.

Shinawatra’s advisors had made no secret of the fact Ranieri was the man they had identified as as Stuart Pearce’s successor as manager.

Ranieri met Shinawatra in London last Wednesday, giving a firm indication he wanted the job, which would have come with an estimated £50million transfer kitty.

His about-turn leaves City searching for a new man, with former Liverpool boss Gerard Houllier the current bookies’ favourite.

Ranieri told Sky Sports News: “I know it is a big problem for me, to choose, but Juventus are one of the best teams in the world.

“It was difficult to say no to the big project at Manchester City – but the team have not taken over yet and for me I cannot wait for one week more.”

Nevertheless, the Blues were set to confirm when the Stock Exchange opened this morning that talks had moved from ’preliminary’ to ’advanced’, indicating that Shinawatra is not letting the setback affect his plans.

“The board of Manchester City confirms that it is now in advanced discussions with interested parties that may or may not lead to an offer being made for the Company,” a statement read.

“A further announcement will be made in due course as appropriate.”

The wording of the statement is interesting in that it suggests there are other parties interested in buying the club other than Shinawatra.

However, he remains the most obvious candidate to take control from current chairman John Wardle who, together with business partner David Makin, is keen to offload his 29% stake in the cash-strapped club.

The City takeover saga is proving painfully slow for City fans, who are anxious to know who is going to be in charge of their club next season.

After the impression was given a deal would be concluded by the end of last month, talks have dragged on, with paperwork now being handled by Shinawatra’s lawyers.

Advisors for Shinawatra have insisted the process will not be halted by a ruling in Bangkok that he had been involved in electoral malpractice – a verdict which prevents him taking up any political role for five years.

Whoever does get the manager’s job is hoping to have access to a healthy transfer kitty.

However, City will soon have to deal with a decision on errant midfielder Joey Barton’s future.

Despite claims a deal with Newcastle for the England midfielder would be done, so far the Magpies have fallen well short of the £5.5million offer which would allow Barton to enter talks under the terms of his contract.

As Newcastle boss Sam Allardyce considers his options, City are bracing themselves for a bid from West Ham who, after landing Scott Parker, are ready to offer Barton the kind of cash which could make life in the capital extremely attractive.