Pep Guardiola says Manchester City's academy is "working so good" as 18-year-old Wales international Rabbi Matondo nears an £11 million ($14m) move to Schalke.
City had been hopeful of agreeing a new deal with Matondo despite rival interest from a number of clubs, including several from the Bundesliga.
But it now appears that the youngster will be moving to the Veltins Arena this month, with his City contract expiring at the end of the season.
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The Premier League champions were in the same situation with Brahim Diaz, who elected to move to Real Madrid for an initial £16.