City had seemingly identified the Brazilian as a replacement for Kevin De Bruyne, who is set to miss a sizeable chunk of the season due to a hamstring injury. According to the Daily Mail, the Hammers agreed a big-money deal to sell Paqueta to the treble winners - only for the move to collapse after the FA were alerted to apparent breaches of their betting rules by Paqueta.
He was summoned to be interviewed by a panel of investigators on Monday - something the 25 year old is said to have been open to. However, the Hammers lodged an appeal for this process to be delayed, with the FA agreeing to their request.
West Ham are reported to have been concerned about how the saga has played out in the media without any public acknowledgement of the potential infractions by the FA. The delay will allow the club to take stock of what lies ahead for the midfielder, having been alerted to the potential breaches last week.
Paqueta featured for West Ham in their 3-1 victory over Chelsea at the London Stadium on Sunday, scoring from the penalty spot in second-half stoppage time. After the game, David Moyes remained coy when asked about the situation.
When questioned on whether there was ever any chance of Paqueta missing the game, Moyes replied: "Never any doubt. He’s a solid and tough character. No problems.
"I thought 65,000 people stood to their feet and applauded him for what he’d done. He showed character, never hid away from the ball ever. His performance was very, very good, especially in the second half."
A new date for Paqueta's interview with the FA is yet to be set, though he was recently removed from the Brazil squad for their matches next month.