© AP Enlarge Bruno Zuculini has also been linked with Inter Milan but will reportedly cost Manchester City £1.5 million

Manchester City have agreed to sign Racing Club midfielder Bruno Zuculini, according to the Argentine club.

Racing president Victor Blanco said the 20-year-old, who has also been linked with Inter Milan, will join up with Manuel Pellegrini's side next season.

Etihad expansion plans approved Meanwhile, plans to significantly improve the Etihad Stadium's capacity have been approved by Manchester City Council.

The Etihad currently boasts a capacity of 48,000, but City are hoping to add a third tier to the North and South stands plus a further 2,000 pitch-side seats in a hope to expand the size to 62,000.

The expansion would make the Etihad the second-biggest stadium in the Premier League after Old Trafford. The increase is expected to be finished by the 2015-16 season.

In a radio interview with Deportivo Telam he said: "Bruno Zuculini has already signed an agreement to leave in June to join Manchester City."

Zuculini, who made his debut for Racing at 16, is out of contract in the summer and will reportedly cost City around £1.5 million.

He is an Argentina under-20 international who will not require a work permit to play in England as he has an Italian passport.

City have been looking for players who can offer cover for Yaya Toure and Fernandinho in the centre of midfield and failed with an attempt to sign Porto's Fernando on the final day of the January transfer window.

Zuculini's impending arrival may prompt speculation about the future of Jack Rodwell after Everton tried to take the England international back to Goodison Park on loan last month.

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