Ilkay Gundogan to join Manchester City in £21million move after agreeing four-year deal to become Pep Guardiola's first signing

Manchester City are set to confirm that Ilkay Gundogan has become their first signing under new manager Pep Guardiola after the Germany midfielder tied up a £21million move from Borussia Dortmund.

Gundogan is currently out of action following surgery for a dislocated kneecap that will rule him out of Euro 2016 and the start of next season, but that has not deterred Guardiola from going ahead with the deal.

City are expected to announce the signing on Thursday after concluding a four-year deal with the player on Wednesday night.

Midfielder Ilkay Gundogan has agreed a four-year deal to join Manchester City from Borussia Dortmund

Gundogan, 25, will miss the European Championships after having surgery on a dislocated kneecap

The 25-year-old appeared 25 times for Dortmund in the Bundesliga last season, providing three assists. 

However, it is understood that Guardiola will not be returning to his old club Bayern Munich to bid for Thiago Alcantara despite speculation linking City with the Spain midfielder.

City also retain a keen interest in Everton defender John Stones, who is away with England, and there are suggestions a bid to rival Manchester United for Gundogan’s team-mate Pierre-Emerick Aubameyang may be on the cards.

Pep Guardiola is not expected to attempt to sign Thiago Alcantara from former club Bayern Munich

City are still believed to be interested in signing John Stones from Everton and defender Aymeric Laporte

They are still frontrunners for the signature of Athletic Bilbao central defender Aymeric Laporte, who is mulling over a fresh contract offer in Spain, one which has been on the table for months. If the Frenchman is to depart, City are the expected destination.

Guardiola and Begiristain might well be disappointed in a pursuit for Reece Oxford, however, with West Ham holding firm.

Wheels are turning on a number of deals ahead of their new manager arriving next month. 

The Etihad club could be scuppered in their move to sign wonderkid Reece Oxford from West Ham

Guardiola is aware of the set-up at City’s campus and is expected to be stationed in Pellegrini’s old office when he begins work on the ground.

One player ready to remain for his first season in charge is Jesus Navas. The Catalan is set to offer the winger - who has a year left on his current contract - an opportunity to impress.

Navas is understood to be ready for a move back to Sevilla when he leaves City and is not interested in playing elsewhere in Europe. 

Jesus Navas will be given an opportunity to impress Pep Guardiola when he takes charge of City