Manchester City have signed teenage Watford forward Jadon Sancho in a £500,000 deal.

The Championship club agreed terms on Friday and the 14-year-old will link up with City's academy.

Sancho, an England Under 15 international, already has a sponsorship deal with Nike and is tipped to make a top flight career.

Manuel Pellegrini's Manchester City have recruited youngster Jadon Sancho from Watford

Sergio Aguero (right) pictured in action in City's last Premier League game, a 2-0 win over Leicester City

James Milner (right) scored the second goal for City in the 88th minute of the game against Leicester

City will pay an initial £66,000 with the fee increasing on appearances and Watford have also secured a 10percent sell-on.

Liverpool had also shown an interest in the youngster.