Manchester City have reportedly decided that they are willing to spend £45m to sign Shakhtar Donetsk midfielder Fred.

Earlier this week, it was claimed that Pep Guardiola had given permission for a £30m offer to be made for the Brazilian either in January or during the summer.

However, according to the Manchester Evening News, the Premier League leaders are now prepared to up their bid in an attempt to secure a long-term successor to Fernandinho.

The 32-year-old has played a key role for City this season, but it has been suggested that Guardiola is wary over the number of games that the central midfielder has competed in since August.

Shakhtar are said to want in excess of City's improved offer, while Fred still has three-and-a-half years remaining on his contract with the Ukrainian giants.