Manchester City are close to agreeing a deal with Hajduk Split to sign midfielder Ante Palaversa for a fee in the region of £7m, Sky Sports News understands.

The 18-year-old holding midfielder is believed to be viewed by City as a signing for the future rather than immediate competition for Fernandinho.

Palaversa is yet to graduate to the Croatian senior side, but is captain of their U19s, and has scored three goals in 11 caps.

He has broken into the Hajduk Split first team during the 2018/19 season, making 17 appearances and scoring twice for the league's sixth-placed side.

Palaversa looks set to become City's second signing of the January transfer window, following the arrival of 21-year-old Japanese defender Ko Itakura from Kawasaki Frontale on Monday.