The 19-year-old Croatian striker - formerly of Hajduk Split - has been denied a work permit, forcing him to return to his homeland, where he has now signed for Slaven Belupo.
Jelavic had been training with Manchester City for the past few months, with a view to signing at the Etihad Stadium permanently, and Roberto Mancini was reportedly keen to do a deal for the talented teenager.
"Roberto Mancini told me that everything is sorted out, that we have an agreement and that I will stay at Manchester City," he told Sportske Novosti. "But then it became clear that there will be problems with the work permit.
"They say that they will keep watching me so I really hope that everything is not dead yet."
Of course, Manchester City have a wealth of attacking options at present, with Sergio Aguero, Carlos Tevez, Edin Dzeko and Mario Balotelli currently to choose from.
If Jelavic is given the green light for a move to England, then the likelihood is he would have to bide his time, so continuing his development back in Croatia might turn out to be beneficial for both parties.
"I had a great time over there, everybody helped me so much," added the forward. "It was great experience and I hope that one day I will have the luck to play for such a great club."