Manchester City have agreed a deal to sign Mateo Kovacic from Chelsea for a fee of £25m plus £5m in add-ons.

Kovacic had been an important figure at Chelsea since joining from Real Madrid on a five-year deal in 2019, having initially arrived on loan. The Croatian is leaving having entered the final year of his contract and with Chelsea undergoing a squad overhaul after the arrival of Mauricio Pochettino as manager.

Kovacic’s fellow midfielder N’Golo Kanté is also departing, with the French World Cup-winner joining Saudi Arabian club Al-Ittihad when his contract expires at the end of the month.

Kovacic’s arrival at City will cast further doubt on the future of Ilkay Gündogan. The German’s contract expires shortly and he has been linked with a move to Arsenal. Such a move would be a major surprise given how important City’s captain was to their stunning success.

Meanwhile, Chelsea have rejected a £50m bid from Manchester United for Mason Mount.

United opened talks with Chelsea over a deal for Mount earlier this month having already agreed person terms with the 24-year-old England midfielder, who looks certain to leave his boyhood club after failing to agree a new contract.

Chelsea are likely to want at least £70m plus add-ons for the player, who has also been monitored by Liverpool and Bayern Munich.