Manchester City are close to completing a €40 million deal to sign Chelsea midfielder Mateo Kovacic, ESPN reports.

Talks between the two clubs have progressed well in recent days, with a broad agreement on the fee.

This has led to detailed negotiations about how the payments are structured.

Chelsea are under pressure to raise funds through player sales after splashing out around £600 million during Todd Boehly’s first year as owner, only to miss out on European qualification altogether.

Any outgoings completed before June 30 will fall under the first full tax year and, therefore, help mitigate losses to aid compliance with UEFA’s Financial Fair Play rules.

Kovacic has agreed personal terms with the treble winners, and the move is now imminent.