By Germany correspondent Hans Matthias

Manchester City have agreed the terms of a four-year deal with Schalke winger Leroy Sane, according to a report.

German publication Sport Bild claim City are prepared to pay up to £42millon to land the winger this summer.

It is said City are set to beat heavyweights Arsenal, Paris St-Germain, Barcelona and Bayern Munich in the race to sign the 20-year-old.

Pep Guardiola’s team have agreed personal terms with the player but a fee has not yet been settled between City and Schalke.

As reported by Football Insider, new Schalke manager Christian Heidel had told the wide man to make up his mind about his future when he returns to his club side after international duty with Germany.

“Leroy Sane must make after the European Championship a decision regarding his future. For Schalke 04 takes a certain predictability, “Heidel said in an interview with Sport Bild. “We have always made it clear that we would be pleased if Leroy Sane remains at Schalke.”

The big clubs are circling around the 20-year-old, who is regarded as one of the hottest young prospects in Europe despite being only a bit-part player for his country at Euro 2016.

The attacking midfielder who plays predominately as a winger, helped guide Schalke to a 5th placed finish in 2015-16 and chipped in with eight goals in 33 appearances.

New City boss Guardiola has already secured the signature of Borussia Dortmund midfielder Ilkay Gundogan, as well as the capture or Spanish International Nolito from Celta Vigo.

In other Manchester City news, they have opened talks on mega-money striker deal but have been told they must pay another £37million.