Manchester City has been confirmed as the second of three teams to compete in the International Champions Cup in Melbourne in July.

The defending Premier League champions, which acquired A-League side Melbourne City in January, will join European champion Real Madrid and one other team in the three-team preseason tournament from July 18-24.

Inter Milan from Italy's Serie A is also reportedly earmarked to take part in the competition.

The tournament was last year held in the United States, with Manchester United beating Liverpool 3-1 in the final, but the competition has been expanded to include three teams facing off in Melbourne.

The announcement follows recent blockbuster tours that saw Manchester United play in Sydney and Liverpool feature in front of a packed-out MCG.