Schalke boss Roberto di Matteo is closing on a deal for Manchester City defender Matija Nastasic.

Schalke are close to agreeing a deal with Manchester City to sign Nastasic, according to the German club's general manager Horst Heldt.

He said: "We are negotiating back and forth, that's how it goes. You get closer and closer and in this case we are no longer far apart from each other. I am optimistic that we will get this done in the coming days."

Heldt added the deal would be "a loan with an option to buy".