Manchester City have reportedly moved a step closer to completing a deal to sign Nicolas Otamendi after agreeing a fee with Valencia.

Despite being linked with Manchester United earlier in the summer, City emerged as frontrunners for the Argentine defender over the weekend.

Reports had suggested that Valencia were initially unwilling to consider an offer below the 27-year-old's release clause, which is believed to be close to £35m, but Sky Sports News claims that City have agreed a deal to pay €40m (£28.2m).

The transfer is not expected to involve a loan deal for any City player after it was rumoured Eliaquim Mangala could move in the opposite direction, and Otamendi is expected to undergo a medical on Tuesday afternoon.

Otamendi joined Valencia from Porto in February 2014.