Manchester City and Sevilla have come to a £65m agreement on Ruben Diaz, the Portuguese club have announced.

Nicolas Otamendi will join Benfica as part of the transaction following the Citizens failure to land Sevilla’s Jules Kounde.

Skysports reveals that the deal worth an initial £62m, with a further £3m subject to add-ons.

The Premier League club earlier sought the services of Jules Kounde and bid a  €55m for the French international but the offer was rejected as Sevilla made known that they have no intentions of selling, and even if they would be forced to, the 90m euros release clause of the French centre back must be fulfilled.

Guardiola shifted his focus on Ruben Diaz to provide solutions to his backline before Leicester City humiliated the former champions at the Etihad by 5-2.

City’s right centre back has been unfilled since the departure of Vincent Kompany, costing them the League, FA Cup and their quarter-finals champions league exit.

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The 23-year old Portuguese scored and captained his side in Benfica’s 2-0 win over Moreinense on Saturday. After the game, his manager Jorge Jesus confirmed his exit.

"I'm pretty sure it was his (Rúben Dias's) last game, but sometimes everything changes at the last second in football. I don't think that's going to happen, though.

"He's a player we're sorry to see go, he came through the academy, is our captain and plays for the national team. I also take some of the blame for him leaving today.

"This is also to do with getting knocked out of the Champions League and there are things that need to be balanced (financially) at management level. He has a high market value and is certainly already a fantastic player who will continue to improve."