Manchester City and Real Madrid have settled on a fee for Brahim Diaz.

BBC Sport reports City youngster Diaz is close to joining Real Madrid for an initial £15.5m.

There has been uncertainty over the 19-year-old's future since the start of the season.

City manager Pep Guardiola previously said the club were trying to persuade Diaz to sign a new contract.

However, the Blues have now accepted that Diaz, a Spain Under-21 international, will join Real Madrid for a fee that could rise to £21m.

Diaz joined City from Malaga as a 14-year-old in 2013 and made 15 first-team appearances, four this season.