Manchester City are closing in on a £21.5m deal for teenage Gremio starlet Diego Rosa, according to a report.

The midfielder, who does not turn 18 until October, has yet to make a senior appearance for the Brazilian club.

However, City are said to be big fans of the youngster - a member of Brazil's Under-17 World Cup-winning squad last year - and hope to bring him to the club in the next 12 months.

The Sun claims that the Citizens will only pay around £4.5m upfront for Rosa, with the other £17m coming via various performance-related add-ons.

Rosa will not be able to link up with City until January due to his age, at which point it is suggested he will be sent straight out on loan to gain further experience.