Speculation suggesting that new Manchester City manager Pep Guardiola has a clause in his contract preventing him from signing Bayern Munich players is reportedly incorrect.

Bayern winger Douglas Costa claimed earlier this week that Guardiola had been banned from returning to his former club to poach players as part of his deal with the German champions.

However, according to PA, sources at Man City have revealed that those reports are wide of the mark and that they are free to conduct business with Bayern.

Guardiola will not officially take over as City boss until his contract with Bayern expires next month, although the Premier League side have already made moves in the transfer market.

The Spaniard has so far been targeting his former Bundesliga rivals Borussia Dortmund, signing Ilkay Gundogan and reportedly entering advanced talks with Pierre-Emerick Aubameyang.