Manchester City are reportedly on the verge of completing a £16m deal for Velez Sarsfield attacker Thiago Almada.

The 18-year-old, who has been dubbed 'the new Lionel Messi', recently rejected a new contract at the Argentine outfit which would have seen his release clause rise to £23m.

Man City are understood to have triggered his existing release clause with their £16m bid, and the Daily Mail reports that terms are close to being agreed.

Pep Guardiola has been keeping tabs on the youngster in recent years and has now decided to make his move in order to beat other interested parties to his signature.

City will reportedly send Almada out on loan to Sporting Lisbon for a year, having seen feeder club Girona - their initial planned destination for the Argentine - relegated from La Liga last season.

Almada scored three goals and created two more in 16 appearances for Velez Sarsfield last season.