Pep Guardiola has revealed Leroy Sane was close to signing a new contract in the last few weeks before a sudden about-turn. Bayern Munich remain hopeful of signing Sane, even if City are adamant it will take a fee of at least £137 million to stand any chance of landing the Germany winger.

City have been frustrated by what they perceive to be Bayern’s attempts to unsettle Sane this summer and recently wrote to the Bavarian giants to demand they show more discretion after being angered by claims from the Bayern coach, Niko Kovac, that he was “confident” of signing the 23-year-old.

The Premier League champions have not yet given up hope of tying Sane to a new contract but Guardiola has disclosed that they suffered a setback in talks in recent weeks. Sane’s existing deal runs until June 2021.

“We want him to stay here because we [have been trying] to extend the contract for more than one year, we were quite close a month ago and now it's a little bit different but that’s the reality - I can’t say any more. That's where it is,” Guardiola said.

“What Txiki [Begiristain, the City director of football] sent me two or three weeks ago, it was quite close. Now it's not.”