Manchester City are following Nacional de Montevideo defender Sebastian Coates.

The Uruguay U20 international's representatives confirmed last week that City were among clubs following the youngster at last month's U20 World Championships in Egypt.

Coates has just signed a new deal to 2012 in the last 24 hours, which is expected to smooth his sale in January as it carries a £4 million buyout clause.

Along with City, Inter Milan and Juventus are also keen.