Real Madrid boss Zinedine Zidane has revealed that full-back Danilo has "gone", with Manchester City believed to be close to completing a deal for the Brazil international.
Reports emerged earlier this week suggesting that City had agreed a £26.5m deal for the 26-year-old, beating Chelsea to his signature.
Madrid face the Citizens in a pre-season friendly in Los Angeles on Wednesday, and Zidane confirmed Danilo's departure at a press conference on Saturday.
"We've had some very good players move on and some young guys come in. We always try to make improvements," the Frenchman told reporters.
"Danilo has gone and [Alvaro] Morata too. I'm not saying we're lacking a striker, but there's one missing that we had here last year. That's the way it is. We'll look at how we're going to manage things."
Man City are also rumoured to be on the verge of signing AS Monaco defender Benjamin Mendy.