City, who on Friday reported annual losses of 97.9million and increased turnover of 231.1million, were said to be on the brink of being awarded a franchise that would be based in the Queens district of New York.
It had been suggested David Beckham had been approached to be part of the scheme, which was to be named New York City Football Club and cost Blues owner Sheikh Mansour 100million.
However, Manchester City officials have now distanced themselves from the talk.
"Manchester City are not buying an MLS club," said City in a short statement.
Sheikh Mansour has used his involvement with City, on which he has now lavished well in excess of 1billion, to raise the profile of Abu Dhabi.
It was suggested an involvement within the MLS would add to the work that has taken place turning City from a mid-ranking Premier League club into last season's champions.
A second MLS franchise in New York is set to be based in Queens, close to the site of Flushing Meadows, which currently hosts the US Open in tennis.
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