Reports had claimed that City would use the Swedish international as bait to land left-back Jetro Willems from the Dutch outfit.
However, having spent last season with Feyenoord on loan, the 20-year-old has insisted that they are the only club in the Netherlands that he would consider joining permanently.
"I will never, ever play for PSV. In the Netherlands, Feyenoord are the only club I would want to play for. Everyone knows that," he said.
Guidetti has not featured for City's senior side since a League Cup match against West Bromwich Albion in September 2010.