Manchester City have pulled back from talks for Universidad Catolica starlet Jose Cifuentes.

The Sun says City offered £2million for the Ecuadorian midfielder, 20, but Universidad Catolica want more as Cifuentes and his representative are due 40 per cent.

Highly-rated Cifuentes, 20, is on loan at America de Quito and starred during the Under 20s World Cup, bagging Goal of the Tournament.

Pep Guardiola's side has been locked in a battle with Celtic for his signature.

Neil Lennon confirmed the youngster was on his radar but the Hoops have yet to step up their interest.