Manchester City are closing in on Valencia winger David Silva.

The People says the Spanish ­midfielder, 24, is ready to sign for Manchester United's ­mega-wealthy local rivals in a £25million deal.

The cost of the deal is less than would have been expected a year ago, but the Spanish club have been forced to sell cheaper than they wanted to ­because of serious ­financial ­problems that could see them in ­trouble with UEFA.

Old Trafford boss Sir Alex Ferguson ­predicted it would be tough to lure top foreigners to Britain ­because of high tax rates - and working to a strict budget this summer - but knew that Silva could be bought at the right price.

But City executives are ready to beat United to the punch on Silva.