Manchester City are reportedly nearing the capture of Gremio midfielder Diego Rosa.

The 18-year-old has been strongly linked with Pep Guardiola's side this year, but the English giants did not manage to complete a deal during the summer transfer window.

According to the Manchester Evening News, City have now agreed a deal for the youngster, who is likely to cost an initial £5.2m, although the deal could eventually rise to £23m.

The report claims that Rosa is expected to be loaned out upon his arrival, with Belgian outfit Lommel SK - part of the City Football Group - seen as a possible destination.

The teenager is yet to make his first-team debut for Gremio but his performances at youth level and for Brazil's Under-17 side allegedly led to a host of attention.

City are also reportedly weighing up a January move for Barcelona attacker Lionel Messi.