Manchester City held talks with Vincent Kompany over an immediate return but the former captain is remaining at Anderlecht.
The 34-year-old left City last year after lifting a fourth Premier League title as captain, instead opting to take over as manager at his boyhood club.
Kompany, who had a mixed first term at the helm, intends to stay in the Belgian capital and that could stretch beyond the initially agreed 2022.
City had informally discussed the prospect of the defender moving back to the Etihad Stadium and hope he will be ready to take up a prominent position in the future.