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Swansea City are close to sealing a sensational swoop for Bayern Munich star Renato Sanches.

The Swans interest in the 20-year-old was first revealed by Wales Online earlier this week, but they were thought to be outsiders for his signature given the host of elite European clubs chasing the midfielder.

However, Paul Clement’s previous knowledge of the player and his close friendship with Bayern boss Carlo Ancelotti have proved key factors in putting Swansea in line to beat the likes of Chelsea, Juventus, Monaco and Manchester United to a season-long loan move.

The deal is yet to be finalised, a loan fee and the split of how Sanches’ wages are paid between Swansea and Bayern are still to be ironed out.

But it is thought the Liberty Stadium outfit are in the driving seat and on course to wrap up a move that would rank as one of the most exciting in the club’s history.

Sanches has long been regarded as one of the continent's brightest young stars, and was one of Portugal's stand-out performers as they secured Euro 2016 glory in France last summer, beating Wales in the semi-finals along the way.

His displays in the finals prompted a bidding war for his services, and he left Benfica for Bayern in a 35million Euro deal.

However, his first season with the Bundesliga champions did not plan out as he had hoped as he made 25 appearances without scoring a goal or contributing an assist.

Ancelotti decided the youngster would benefit from a season on loan with regular first-team football, with Sanches open to the prospect as he looks to ensure he cements a place in the Portugal squad before they are potentially involved in next summer's World Cup finals.

His struggles at Bayern, for whom he made just four league starts, had seen him miss out on a place at the Confederations Cup with the European champions.

The move represents a major coup for head coach Clement, whose involvement is believed to have been a vital part of negotiations.

The 45-year-old had made clear from his arrival in SA1 he would use his contacts at clubs like Bayern, Chelsea, Real Madrid and PSG - all of whom he worked for as Ancelotti's assistant - to bring new faces to the Liberty.

And in this transfer window he has already brought Tammy Abraham on loan from Stamford Bridge and now looks set to land Sanches.