• City agree £3m deal with Paraguayan club for 20-year-old • Attacking midfielder set to be sent out on loan to Girona or New York City FC

Manchester City have reached an agreement with the Paraguayan club Libertad to sign the attacking midfielder Jesús Medina for £3m.

The 20-year-old, who has represented Paraguay at under-17 and under-20 level and made his debut for the senior side this year, is expected to be sent on loan to Girona or New York City FC. They are part of the City Football Group stable.

Manchester City will not win the quadruple, insists Pep Guardiola Read more

Medina has been tracked by several clubs in Europe but City were able to strike a deal that will see him sign a long-term contract with the Premier League leaders. The club are keen to sign the best young talents in world football, with Pep Guardiola hoping to give more youngsters a chance in the first team.

The City manager was delighted to see his side, which included the 20-year-old Tosin Adarabioyo, Oleksandr Zinchenko (21), Phil Foden (17) and Brahim Díaz (18), beat Leicester City on penalties in the Carabao Cup quarter-final on Tuesday night. City conceded a 97th-minute spot-kick but recovered to win on penalties.

“What is important is how we reacted,” Guardiola said. “Whether it was a penalty or not, the referee is there and the TV is there, so the important thing is how we reacted. We could have gone down because it was the last minute and it was tough, especially with a lot of young players.”