Manchester City have told Jason Denayer they want him to spend next season in the English Championship.

The Belgian defender has been a revelation during his year-long loan move to Celtic. Already a PFA Scotland Young Player of the Year nominee, the Belgian scooped the same honour at Celtic’s annual awards dinner in Glasgow on Sunday.

The 19-year-old had consistently stated he intended returning to his parent club this summer to fight for a first-team place but last week changed his tune to give Ronny Deila some hope of retaining his services for another season.

Jason Denayer is set to return to England to spend a season on loan in the Championship

At the time, Denayer said: ‘Of course I would be happy to do that. I’ve had a very good year here so far.

‘I would be happy to come back but I will need to wait until the summer to see what is happening. I prefer just to focus on the present.’

Sportsmail understands, however, that City will block any move by Celtic to instigate another one-year deal.

Although they feel Denayer isn’t quite ready to push for a first-team place at the Etihad, they want to see him spend a year in the English second tier in order to complete his footballing apprenticeship.

The on-loan Manchester City defender has been in impressive form for Celtic since joining the club

The player recently become a full Belgian international – stepping into the breach when Vincent Kompany was red carded during a 1-0 win against Israel in a Euro 2016 qualifier.

With Virgil van Dijk very much on Southampton’s radar, Deila faces the prospect of losing both of his centre-halves before the Champions League qualifiers begin in July.

Celtic striker John Guidetti, meanwhile, will discover on Thursday if he is to be punished for singing an allegedly ‘offensive’ song about the demise of Old Firm rivals Rangers.

Ronny Deila will be disappointed to lose Denayer and he could lose Virgil van Dijk (right) as well

Guidetti was issued with a notice of complaint last month after giving an interview to Dutch TV show FC Rijnmond.

It is not clear if Guidetti will appear before the Hampden panel at Thursday’s re-arranged hearing but Celtic have already backed the player.

In a statement issued last month, a spokesman for the Parkhead outfit said: ‘We are very surprised and disappointed that this has even found its way to an SFA judicial panel. John Guidetti will be defending this charge.’

John Guidetti faces disciplinary action after singing an offensive song about rivals Rangers

Guidetti made a sensational start to his Celtic switch, scoring 11 goals in his first 12 games after moving north from the Etihad Stadium.