Manchester City have agreed a £30million deal with Chelsea to sign midfielder Mateo Kovacic, the PA news agency understands.

The treble winners are set to pay an initial £25million for the 29-year-old Croatia international, with a further £5million to follow in potential add-ons.

Kovacic, who joined Chelsea from Real Madrid in 2018, is entering the final year of his contract at Stamford Bridge.

City will now look to complete the formalities of a move with the player.

Kovacic will become City’s first signing of the summer and give manager Pep Guardiola more midfield options at a time when captain Ilkay Gundogan’s future is uncertain.

Gundogan’s contract expires at the end of this month and the Germany international has not yet agreed new terms.

Kovacic, who won the Champions League three times with Real and once with Chelsea, could be one of several summer departures from the London club as new manager Mauricio Pochettino trims his squad.