Manchester City are taking a massive hit on the sale of Felipe Caicedo to Levante.

The Mirror says City will take a £4.4million hit on forgotten striker Caicedo by selling him to Spanish side Levante in the summer for just £850,000.

But they could miss out on a windfall as the La Liga outfit plan to then stick him up for sale for £4m as soon as they land him.

Levante can snap up the 22-year-old Ecuadorian for the reduced fee as part of the loan deal they agreed with City last summer.

Since then, Caicedo has taken the Spanish league by storm - hitting a club record 11 goals in 19 games and capturing the eye of Atletico Madrid in the process.

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