Manchester City have signed teenager Ante Palaversa from Hajduk Split, with the midfielder immediately rejoining the Croatian side on loan.

The 18-year-old completed a medical in Manchester this week and has moved for a reported fee of £7m.

Hajduk have announced Palaversa will return to them on loan until the end of the 2019-20 season, although City can recall him next January.

The Croatia Under-19 international is happy to stay with his boyhood club ahead of linking up with "one of the biggest clubs in the world".

"Thanks to Manchester City for the trust," he told Hajduk's website.

"There is still a lot of work ahead of me. I have not yet shown all I can and I hope to play for Hajduk to justify the great trust I have received from England's champions."