Manchester City are working on a deal to sign highly-rated defender Yan Couto with Barcelona pulling out of the race for the Brazilian teenager.
The 17-year-old right-back, who has drawn comparisons with former Barca defender Dani Alves, is wanted by the Premier League champions although a deal is not yet thought to be imminent.
However, the Spanish giants have withdrawn their interest in the Cortiba player believing that he has already agreed to switch to the Etihad Stadium.
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It is understood that City are not in a rush to complete a deal before the January transfer window closes with the full-back unable to make an immediate impact for the rest of their season.