Manchester City boss Pep Guardiola admits their academy sales helped fund the £100m signing of Aston Villa captain Jack Grealish.

Guardiola says his club could only afford to buy Grealish because of the revenue generated from selling academy players.

"When we could spend this money, which is a lot, because we sold for almost £60m," said Guardiola.

"We have sold young players from the academy and loan players, so we can afford £100m. Otherwise it would not have been possible. We have spent on him because he is 26-years-old and he can play the next five or six years here, and he is an incredible talent.

"In the last four or five years we have won a lot, especially in the Premier League, with three of the last four titles.

"We need new players. Not many, but a few players that can raise the level of the players that are already here.

"After winning a lot of titles it can be difficult for players to take the step forward, so that's why they need pressure with players like Jack arriving here."