Celtic are reportedly facing an uphill battle to keep Jason Denayer beyond his current loan deal from Manchester City.

According to the Daily Mail, quotes from City manager Manuel Pellegrini which suggest that the Premier League club will invest heavily in home-grown talent may have dented the Hoops' hopes of securing another temporary contract.

Pellegrini told reporters: "I think about the Academy, we must be patient. This club build all these things because young players are important.

"Maybe it's not so easy for young players, especially at big clubs, to play in the first team, with the professional squad. I'm sure in the future we will have very important players coming from the Academy, they will be part of the squad.

"But it's important to be patient, important to have years of working the same way. But you never know. Maybe some talented young players can do it before."

City are currently six points behind leaders Chelsea.