Manchester City have agreed a double deal to sign brothers Luka and Ivan Ilic from Red Star Belgrade, sources close to the players have told ESPN FC.

City scouts have been alerted to the duo and have watched them in action for club and country several times over the last few months.

Red Star were reluctant to lose two of their most exciting young talents, but City have agreed a fee in the region of €5.5 million to land the brothers ahead of other clubs across Europe.

The pair will rejoin Red Star on loan for the next two seasons until Ivan turns 18 and then they will both make the move to England to link up with City.

Luka Ilic (right) is set to be signed by Manchester City. Srdjan Stevanovic/Getty Images

The brothers are regarded as two of the brightest young prospects to emerge from Red Star and Serbia in recent years.

Defensive midfielder Luka, 18, made his first-team debut for Red Star earlier this month in a Europa League qualifier against Floriana.

Attacking midfielder Ivan, 16, became the youngest player to make his debut for Red Star in April when he came on as a late substitute against Spartak Subotica.