Manchester City have reportedly identified Sporting Lisbon midfielder Bruno Fernandes as a potential transfer target.

Since the beginning of the January window, Fernandes has been heavily linked with a switch to City's neighbours Manchester United.

However, despite the Portugal international allegedly agreeing personal terms, the two clubs are yet to agree a fee for the playmaker.

According to Correio de Manha, City may look to take advantage of the situation as Pep Guardiola looks to make changes to his squad.

The report claims that the Premier League champions are willing to go as high as £86m - significantly more than United are prepared to spend on the 25-year-old.

Should they follow up any interest, City may prefer to wait until the summer before completing a deal.