Sky Sports understands that John Guidetti is set to agree a new long-term deal at Manchester City.
The highly-rated Sweden international is then set to seal a loan move away from the Premier League champions.
The 20-year-old only signed his previous deal last summer, when he agreed a three-year deal after nearly leaving the club.
Guidetti has only ever played one League Cup match for City after joining their youth set-up in 2008.
After penning his last deal, he was sent on loan to Feyenoord where he enjoyed a hugely successful spell scoring 20 goals.
Now he is in talks to sign a new deal with City, whilst a host of admirers battle for his signature.
Feyenoord would like him back, but there are clubs in England, France, Spain, Germany and Italy all keen to land him.
North East duo Sunderland and Newcastle are understood to be amongst the clubs interested in taking him.