Manchester City have reportedly agreed a fee with Borussia Dortmund for Ilkay Gundogan.

German publication Kicker has reported that City will pay £20million up front for the 25-year-old midfielder despite the fact he is set to be sidelined until October, worst-case, or August if all goes well with his rehab.

Gundogan is currently out with a dislocated knee cap but incoming City boss Pep Guardiola wants him at the Etihad Stadium and is set to make him his first signing in England.

The aforementioned fee does not include performance-related add-ons.

It is understood that personal terms will not be a problem and Gundogan, who is ruled out of Germany's Euro2016 campaign, will complete his transfer from Dortmund to City when the summer transfer window opens.