Manchester City have seen off Premier League rivals to sign 13-year-old Finley Burns from Southend United in a £175,000 deal, which could rise to £250,000.

The talented defender was free to leave Roots Hall in the summer and had attracted attention from Liverpool, Chelsea and Arsenal after being promoted to Southend’s Under 16 side.

The fee — which is a record for a 13-year-old, and which was revealed in The Times — is a reflection of what Premier League clubs are now willing to pay to sign the best talent.

Manchester City have signed 13-year-old Southend United defender Finley Burns

City have invested millions into building an academy worthy of rivalling any team in the land

It was reported that City paid £150,000 more than required under the terms of the Elite Player Performance Plan (EPPP).

The EPPP governs compensation to academies for players they lose to rivals - and requires category three academies such as Southend's to be handed £3,000 for each year a child spends at a club between the ages of nine and 12, rising to £12,500 for each year thereafter until the age of 16.

It means City only needed to pay £34,000 for Burns, instead of the £175,000 they did pay.

Burns and his family had a number of offers to consider but he was impressed by City and particularly their state-of-the-art City Football Academy facility.

The club’s youth sides are also performing on the pitch. City’s Under 18s beat Liverpool 7-0 earlier this season and knocked their Merseyside rivals out of the FA Youth Cup. Their Under 15s beat Manchester United 9-0.

Pep Guardiola has also been keen to bring several of the club’s Under 23 squad into his first team set-up and that potential career path helped sway Burns and his family.

Ricky Duncan, Southend United’s head of youth, said: ‘There were four or five Premier League clubs after Finley in the end and it’s extremely difficult to keep hold of a boy once that happens.

Burns will soon become familiar with surroundings at City's Football Academy in Manchester

'He would have had a 10-day window of opportunity to look elsewhere at the end of the season so this was the best way to do it. He’s a great kid from a nice family and everything was sorted out amicably which is how it should be.

'We would prefer our best young players to come through and play for our first team but the fact Manchester City are aware of youth players at Southend United reflects very well on what everyone is doing here.

'Man City could sign anyone from across the world so for them to come to us is a real compliment.

'We’re still in touch and we wish him all the very best for the future.'