Manchester City have agreed to loan defender Matija Nastasic to German side Schalke until the end of the season. Schalke have "purchase option" for the 21-year-old, who was signed by ex-City boss Roberto Mancini in August 2012.
His last game for City was a 3-0 defeat by Arsenal in the Community Shield in August.
The Serbia international made only 11 league starts under Pellegrini last season.
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