Manchester City could be set to engage in a swap deal with Lyon which will see the out of favour defender Eliaquim Mangala moving to France while Mouctar Diakhaby will move to the Etihad Stadium.

Lyon had hoped to sign Mangala during the summer transfer window for £32 million.

City boss Pep Guardiola was however unwilling to sanction a deal as he had failed to recruit his replacement target, Jonny Evans of West Brom.

Despite the injury problems of Vincent Kompany, Mangala has featured sparingly this season and City will likely be willing to allow him to leave the club during the January transfer window.

Lyon could make another move in January and given that Mangala is desperate to make the French squad for the 2018 World Cup, he is likely to jump at the chance to chance clubs.

Meanwhile, City had Diakhaby watched when Lyon recently faced off against Everton in the Europa League.