Premier League champions working on a deal for 17-year-old full-back as Spanish giants pull out of the race.
Manchester City are working on a deal to sign highly-rated defender Yan Couto with Barcelona pulling out of the race for the Brazilian teenager.
The 17-year-old right-back, who has drawn comparisons with former Barca defender Dani Alves, is wanted by the Premier League champions although a deal is not yet thought to be imminent.
However, the Spanish giants haveIt is understood that City are not in a rush to complete a deal before the January transfer window closes with the full-back unable to make an immediate impact for the rest of their season.
Couto turns 18 at the start of June which is when he be able to complete his move but an agreement could be reached in the coming weeks over a permanent move in the summer.
Reports from Brazil suggest that a £12m ($16m) deal has already been agreed but it is understood that no deal is yet in place.
Couto fuelled speculation that a deal could be imminent when he tweeted a cryptic message of an airplane and eyes emojis on Thursday.
Arsenal and German club Bayer Leverkusen were also believed to be interested in the defender who starred at the under-17 World Cup won by Brazil last year.
Although he has yet to make an appearance for the first team, scouts were impressed by his performance at the tournament where he claimed an assist in the 2-1 victory over Mexico and the semi-final win over France.
He has been compared to Alves because of his attacking abilities from full-back and tireless running.
City have begun to regularly explore the South American market in recent years for emerging players with mixed success.
Striker Gabriel Jesus has been a regular for the first team since his £27m ($36m) move from Palmeiras as a teenager. withdrawn their interest in the Cortiba player believing that he has already agreed to switch to the Etihad Stadium.
It is understood that City are not in a rush to complete a deal before the January transfer window closes with the full-back unable to make an immediate impact for the rest of their season.
Couto turns 18 at the start of June which is when he be able to complete his move but an agreement could be reached in the coming weeks over a permanent move in the summer.
Reports from Brazil suggest that a £12m ($16m) deal has already been agreed but it is understood that no deal is yet in place.
Couto fuelled speculation that a deal could be imminent when he tweeted a cryptic message of an airplane and eyes emojis on Thursday.
Arsenal and German club Bayer Leverkusen were also believed to be interested in the defender who starred at the under-17 World Cup won by Brazil last year.
Although he has yet to make an appearance for the first team, scouts were impressed by his performance at the tournament where he claimed an assist in the 2-1 victory over Mexico and the semi-final win over France.
He has been compared to Alves because of his attacking abilities from full-back and tireless running.
City have begun to regularly explore the South American market in recent years for emerging players with mixed success.
Striker Gabriel Jesus has been a regular for the first team since his £27m ($36m) move from Palmeiras as a teenager.
However, fellow Brazilian Douglas Luiz failed to play a single minute for the first team after missing out on a work permit and has now joined Aston Villa.
Elsewhere, Colombian Marlos Moreno and Argentinian winger Benjamin Garre also failed to make the breakthrough at the Etihad.
At his press conference on Friday, Guardiola ruled out making any additions to go straight into his first-team squad before the transfer window closes.
