The player's agent told Calciomercato that talks with City were at an advanced stage despite serious interest from Real Madrid.
Cristiano Simoes admits that he has not been able to come to a complete agreement with City regarding the 19-year-old Brazilian forward, who is also heavily linked with Inter Milan, but insists that discussions are continuing.
"I can say that we are defining some contractual issues [with Manchester City], we are dealing with that," Simoes said.
"Could he go to Inter? We're very advanced with Manchester City. We'll see."