Manchester City chiefs have agreed to sell Leroy Sane this summer - in principle.

The London Evening Standard says Etihad sources have laughed off suggestions the Germany international would be made available for as little as £35million – insisting they would rather let his contract run down than see him leave for such a derisory fee.

But it's understood he will be allowed to go if he refuses to sign an extension to his deal, which enters its final 12 months at the end of the season. Bayern will have to come up with significantly more than £35million for a player City valued at around £130million when the German giants tried to sign him last year.

The club's owners have long-insisted they will not allow their most valuable assets to run down their contracts and become free agents - which is why they have been in negotiations with Sane for over a year.

Pep Guardiola has also repeatedly said he won't keep players against their will - but City would still prefer to keep hold of Sane and remain hopeful he will sign a new deal.