Brahim Diaz set for Real Madrid switch as Man City insert bizarre Man United sell-on clause

Manchester City teenager Brahim Diaz is on the verge of completing a move to Real Madrid, according to a report, with a bizarre sell-on clause that will see City entitled to a whopping 40 per cent of any transfer fee should the Spanish club sell the midfielder in future to Manchester United.

Press Association Sport reported on Saturday that Diaz, 19, is set for a move to the Bernabeu after City accepted a bid from the Spanish club. The breakdown of the fee is believed to be an initial £15.5 million (Dh72m) that could rise to £22 million (Dh103m) in add-ons if certain targets are met.

With Diaz entering the final six months of his contract at the Etihad Stadium, it is understood City have decided to cash in on the Spanish youngster now rather than risk losing him for free in the summer.

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The deal also includes a 15 per cent sell-on fee but, according to the report, but rather more interestingly, it is understood that rises to 40 per cent should Real sell the Spain Under 21 international to United.

Diaz, who joined the club in 2013 from his hometown club Malaga, is highly regarded by Pep Guardiola and his coaching staff but has often found first-team opportunities hard to come by with Raheem Sterling, Leroy Sane and Riyad Mahrez ahead of him in the pecking order.

With Diaz's transfer set to go through, City must also decide on the futures of defender Vincent Kompany and Eliaquim Mangala, who are both out of contract at the end of June.