Manchester City are setting up a feeder club deal with Paris Saint Germain.

The Sunday Mirror says PSG president Charles Villeneuve travelled to Manchester last week to talk to City about the prospect of them making a major investment into his club.

Villeneuve is looking at how he can raise funds to challenge Lyon's dominance of French football and hoped mega-rich City would be interested in handing over some of their wealth. In return, the Blues would be given first refusal on any of PSG's players.

The deal would also give City a strong grass-roots presence in a country that has produced stars like Zinedine Zidane, Thierry Henry, David Trezeguet, Nicolas Anelka and Marcel Desailly.