Manchester City Lead Chase Ahead of Newcastle United to Sign Uruguayan Starlet Facundo Pellistri

Manchester City are leading the race to sign Uruguayan starlet Facundo Pellistri, but Newcastle United are not ready to give up on landing the exciting Peñarol forward.

The 18-year-old has been making waves in Uruguay, and his dazzling displays have drawn plenty of admiring glances from Europe - including from Spanish giants Real Madrid.

But Spanish outlet AS reports that it is Premier League champions Man City who are now the favourites to sign Pellistri, although they face competition from Newcastle to secure the youngster's services for the coming season.

The Citizens' transfer team has been working hard in recent weeks to get this deal over the line, but the recent changes to the financial landscape due to the coronavirus outbreak have extended the negotiations.

Man City are reluctant to pay the $12m release clause, and they are hoping to come to an agreement of stumping up half of that sum, with the rest to be paid in bonuses and add-ons, based on his future achievements at the club.

The teenage sensation has been offered a five-year deal with the Premier League giants, with a huge wage increase, and further rises depending on his progression at the Etihad Stadium. It is believed that Pep Guardiola has also given his full backing to the signing.

Should the Sky Blues land Pellistri, then the plan will be to send him on loan to La Liga, where there are a number of teams desperate to sign him on a short-term basis, with the intention of handing him plenty of first-team opportunities to grow and develop his game.

The starlet may also feel more at home in Spain, as it will allow him to live in a country which speaks his mother tongue, helping him to acclimatise to life outside of South America.

Newcastle are the other Premier League side to be interested in signing Pellistri, but their hands are tied when striking a deal until their drawn-out takeover is finally confirmed.