City have long been linked with a move for the 23-year-old Brazilian defender.
“I don’t like to waste money,” the Italian coach told Gazzetta dello Sport.
“This is why with City we aim for the top players because those are the ones you need to win.
“But I’m not looking now for strong 30-year-olds, but for good young players to build the future of City.
“You have to invest in young talent – players like him [Luiz], whom so many admire, and who I consider to have everything to become one of the best defenders in the world.
“But he’s under contract at Benfica.”
