Manchester City are close to finalising a deal for Melbourne City's Australian prospect Daniel Arzani and will send him out on loan to Scottish champions Celtic.

The 19-year-old attacking midfielder is expected to move to England for around £280,000 and will then spend the season at Celtic after they headed off competition from PSV Eindhoven.

Arzani made three cameo appearances for Australia at the World Cup and has attracted interest from Roma also but will link up with compatriot Tom Rogic at Celtic, with whom City enjoy a good relationship.

Manchester City are closing in on Melbourne City's 19-year-old starlet Daniel Arzani (left)

The deal will be similar to the one that saw Aaron Mooy move to City then join Huddersfield Town.

Meanwhile, City have once again been offered the chance to sign Sporting Lisbon prospect Rafael Leao.

The 19-year-old forward is regarded as one of the brightest prospects in Europe and plays as a striker or left winger. he broke into Sporting's first team last season but has been unsettled by the fan unrest that saw other players leave this summer.

City striker Thierry Ambrose, 21, is joining French side Lens on loan.