The Croatia international was a top target for the Blues last summer. They were willing to pay around €90m, but Leipzig refused to sell him.

It is now reported that Pep Guardiola 's side are leading the race for the young centre-back, and they have finalised terms over a long-term contract.

The Premier League champions will now proceed to negotiate with Leipzig, but the Bundesliga outfit are expected to demand €100m for him.

Chelsea continue to hold an interest in the 21-year-old, but there is an acceptance that they can not compete with City for his services.

The Blues finished 12th in the Premier League last term, and they won't be playing any form of European football in the next campaign.

Gvardiol has given the green light to join the Champions League holders, and it could be a matter of time before a deal is finalised.

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