Manchester City are closing in on a £36 million deal for Wolfsburg striker Edin Dzeko.

The Daily Mail says the surprise move followed the German club's announcement that the Bosnia forward was set to stay after clubs failed to meet Monday's midnight deadline for his £34m buy-out clause.

The highly rated Dzeko scored 27 goals in 46 appearances for Wolfsburg last season and had become a target for Manchester United, Tottenham, Bayern Munich, AC Milan and Chelsea but none could match City's financial muscle.

General manager Dieter Hoeness had earlier expressed delight that Dzeko was staying.

However, City's money in the end looks to have persuaded Wolfsburg it was too good an opportunity to turn down, regardless of timing.

The 24-year-old has spent three years at Wolfsburg. He has played 23 times for Bosnia, scoring 14 goals.