Manchester City are set to burn off competition from Arsenal and Barcelona to sign Coritiba defender Yan Couto.

Gazeta do Povo says the Gunners and Barcelona were understood to be interested in the 17-year-old, but City have beaten the La Liga giants and their Premier League rivals to his signature.

According to the publication, the teenager is expected to complete his move to the Etihad Stadium when turns 18 in the summer after Pep Guardiola's side agreed a £5m deal.

Although the deal is understood to not include a sell-on clause, it is reported that the Brazilian club could receive as much as double that sum if certain performance-based add-ons are met, reports the Mirror.

Couto earned the attention of some of the biggest clubs in the world after his star performances during last year's Under-17 World Cup.

Brazil won the competition on home soil after beating Mexico in the final.