Manchester City are working to thrash out a compromise with FC Porto to get a deal for midfielder Nico Gonzalez over the line before the transfer deadline, sources have told ESPN.
City have so far indicated they are reluctant to meet the release clause in Gonzalez's contract -- believed to be around €60 million ($62m). They value the 23-year-old at closer to €40m.
Porto do not want to accept a reduced fee because part of the payment will be owed to Gonzalez's former club, Barcelona. The Spaniard moved to Portugal from La Liga in 2023 and a source has told ESPN that the payment owed to Barcelona if Gonzalez moves could be as high as 40% of the total transfer fee.
Sources have told ESPN that talks between the clubs are continuing on Monday. City have until 11 p.m. in the UK to get a deal over the line before the window closes.
City are also keeping an open mind about the possibility of signing Douglas Luiz from Juventus. A source has told ESPN that the Serie A side would have to accept an initial loan offer for the Brazilian with an option to make it permanent in the summer built into the deal.
Juventus have told Luiz's potential suitors that they would prefer a permanent transfer or an obligation to make it permanent in the summer for a set fee.
Meanwhile, a source has told ESPN that City have knocked back an approach from Chelsea for 19-year-old midfielder Nico O'Reilly. City are open to letting O'Reilly leave, but want to include a buy-back option in any potential deal.