Manchester City are set to sign Daniel Arzani from Aussie club Melbourne City.

The 19-year-old playmaker was in England on Friday night undergoing a medical before a £280,000 permanent move to Manchester City.

And an agreement is already in place for the Melbourne City teenager to head north as soon as Celtic push through a work-permit application, says the Daily Mail.

The Scottish champions will incorporate an option to buy Arzani on a permanent basis if the move works out for both sides.

It's understood compatriot and Socceroos team-mate Tom Rogic played a key role in persuading him to commit to Celtic.