Bayern Munich have agreed a fee of £54.8m (A$98.4m) with Manchester City for Leroy Sane, with the German set to sign a five-year deal at the club.
The Bundesliga champions will pay an initial fee of £44.7m (A$80.3m) with a series of performance and trophy-related add-ons.
These could lead to an additional £10m for trophies won such as Bundesliga and Champions League titles as well as personal awards for the player himself.
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City will also take 10 per cent of any profit made by the German club should they sell Sane in the future.
The 24-year-old has continually been linked with a move back to his homeland which has seen City give up almost any hope of negotiating a new contract after nearly two years of talks with the Germany international.
It is also believed the winger will double the wages he was being offered by City to stay at the club with Bayern set to pay the player around £20m (A$35.9m) per year.
Sane has only just returned from a cruciate ligament knee injury sustained in the Community Shield win over Liverpool back in August and was set to enter the final year of his contract at the club.
Therefore the deal can be seen as good business for the club who signed the player from Schalke for £37m (A$66.5m) in 2016.
UNITED SET SANCHO LIMIT
Manchester United will not pay more than £50m (A$89.8m) for Jadon Sancho, senior club officials have told Sky Sports News.
The 20-year-old is keen on a return to the Premier League but Borussia Dortmund and United remain poles apart on their valuations, with the Bundesliga club demanding in excess of £100m for the player they paid Manchester City £8m for in August 2017.
United remain the strong favourites to agree a deal but officials behind the scenes at Old Trafford believe Dortmund’s valuation does not sufficiently reflect the costly fallout from the coronavirus pandemic and must be cut substantially if a deal is to be reached.
United are yet to make an official approach for Sancho, who has 17 Bundesliga goals and 16 assists so far this season.
Dortmund told the German stock market on Monday that playing games behind closed doors will lead to losses of around £41m.
However, United will be encouraged by Dortmund’s statement that their final figures may change depending on the transfer window which opens next month.
It appears likely that Birmingham City’s Jude Bellingham could play a key role in negotiations.
The midfielder, who turned 17 on Monday and is now able to sign a professional contract with Birmingham, is expected to choose between Dortmund and United in the next few weeks – increasing the possibility of the clubs agreeing for Sancho to head to Old Trafford and Bellingham to the Westfalenstadion.
While keen to drive a hard bargain, Dortmund are conscious that Sancho has only two years left on his current contract and could leave for nothing in the summer of 2022.
Earlier this week, Dortmund’s CEO Hans-Joachim Watzke reiterated that Sancho would only leave if their valuation was met.
“I don’t think a club will pay the sum. There is also no coronavirus discount on him,” Watzke told Sport 1.
United know that any potential impasse in negotiations could see a host of top clubs, including Chelsea, Liverpool, Real Madrid and Barcelona, step up their interest in the former Watford trainee.
This appeared in Sky Sports and was republished with permission.