Pep Guardiola is set to lose another talented youngster.
Brahim Diaz, one of Man City's best prospects, only has six months left on his contract at the reigning Premier League champions.
At 19 years old, Diaz has made 14 appearances for City but it is believed he wants more opportunities.
It has been widely believed that Spanish giants Real Madrid have long been interested in his services.
Guardiola addressed that speculation last week, saying that his future is out of the club's hands.
"I know they are in conversation but I don't have any new information about the situation," he said of Diaz last week, per Sky Sports. "Today (Saturday) he trained with us.
"I was clear last week when I spoke about it. We do everything to keep them (the young players) but they decide."
But, despite Guardiola's reluctance to let him go, it appears Diaz has decided that Real Madrid is where he will develop his career.
According to the Telegraph, the two clubs have agreed on an initial fee of £15.5 million, with a further £6.5m payable in add-ons depending on the players success at the Bernabeu.
The Premier League champions are believed to think that is an excellent deal for a player who's contract runs out in the summer.
City have also negotiated a very interesting clause that impacts Manchester United.
It is believed they have also negotiated a 15 per cent sell-on clause on any future transfer.
But, if he were to move to any Manchester club from Madrid, City would be entitled to 40 per cent of any sell on fee.
That is quite clever from City. Surely that's a clause that has been very rarely used in the past.
They are clearly wary that Diaz may grow to become a world superstar, and want to do anything possible to prevent him from moving to their city rivals.
With the clause in place, if Real Madrid are to sell him on, there is a massive chance that he won't be going directly to United.