Manchester City could lose skipper Richard Dunne for a cut-price £1.5 million in the summer.

The Mirror says Dunne is understood to be frustrated at the impasse in talks over a new deal and could take advantage of a FIFA ruling to leave.

Article 17 of FIFA's transfer regulations says that players over the age of 28 who have served at least two years can buy out the remaining 12 months of their contract.

The £10million-rated City skipper, who is being eyed up by Newcastle, could leave once he has paid City around £1.5m.

Dunne, 28, is aware of the FIFA ruling but would prefer to stay and commit his best years to the club.