Manchester City are reportedly close to winning a race against Newcastle United for Uruguayan youngster Faculo Pellistri.

Outlet AS reports today that the City Group have been working with Peñarol in the past few weeks so they can find an agreement for the 18-year-old.

Pellistri is protected by a release clause of US$12m, but due to the economic crisis, Manchester City are working on a cheaper deal.

Their last offer would be to pay 50% of the release clause, leaving the other 50% for performance bonuses. Peñarol would also have a percentage of a future sale.

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Manchester City are offering Pellistri a five-year contract, and the intention is to loan him out in his first season. The Premier League side would let the player and his agents choose his next destination, and that’s something that is convincing him to accept this offer.

Meanwhile, Newcastle United are said to still be in the race, as their offer remains on the table. However, the delay in the club’s takeover process is making things more difficult.