The Serbian born midfielder first joined Manchester City in the summer of 2017 alongside his older brother Luka, and has spent time in the developmental system at the Etihad Campus, and also loaned out to several clubs across Europe.
The 20 year-old has had a positive impact on Verona's side this season, making 30 appearances across all competitions and scoring three times - helping the team to a tenth place finish in Serie A.
Previously, Ilic spent a season at NAC Breda in the Dutch league's second division, where he also impressed.
While it hasn't been stated why Manchester City have turned down the proposal for a loan extension, it's thought that Verona are set to make another offer for the young midfielder.
It was reported by Gazetta Dello Sport via Sport Witness in late April, that the Italian club wanted to sign the player on a permanent deal, as they had an option to buy for €10 million at the end of the 20/21 season.
At that point, Manchester City would supposedly have the right to buy Ilic back at a later date for €20 million if they chose to.
Given how much the Serbian left-footer has impressed, it's unclear whether the City hierarchy are looking to bring the player back to the club, or wait for a better offer to come in for the young talent.
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