The 21-year-old has been a reported target of City as well as other top European clubs, including Real Madrid and Barcelona.
Club president Maurizio Zamparini revealed to the Italian press that a City representative had called him on Monday.
He said: "Yesterday the team manager from Manchester City called me.
"But I cannot speak English so I asked for a fax, but never heard back from them.
"In any case had he asked me about Pastore I would have said he is not for sale.
"If the (City owner) Sheikh (Mansour) wants to do something crazy, then let it be."
Pastore joined Palermo in July 2009 from Huracan, and is under contract with the Serie A outfit until June 2014.
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