Manchester City have agreed a deal in principle to sign Crystal Palace captain Marc Guehi this month for £20m.

City started talks with the England centre-back, 25, this month following injuries to defenders Josko Gvardiol and Ruben Dias.

Guehi, who has been linked with some of Europe's top clubs, is out of contract this summer and was close to a move to Liverpool last summer.

BBC Sport reported earlier this month that City were exploring a move for Guehi and talks have accelerated in the past 24 hours. Guehi is now expected to join City on a long-term contract this month.

Personal terms have not been formally agreed but are not expected to be an issue.

City have already signed Antoine Semenyo from Bournemouth in the current transfer window for £62.5m.

The Guehi development emerged as Palace boss Oliver Glasner confirmed he will leave the club when his contract expires in June.

Glasner said Guehi's potential move had "zero impact" on his decision to go, "because my decision has already been taken months ago".

The Austrian had wanted Guehi to stay until the end of the season, but City and the Eagles reached a deal for the defender on Thursday night.

Glasner says he told Palace chairman Steve Parish he would not sign a new contract in October.

But the Guehi deal is thought to have been the catalyst for him opting to confirm his planned exit on Friday.

City manager Pep Guardiola was asked about the club's interest in Guehi during his news conference on Friday, but shut down the question with a firm "nothing to say".

Meanwhile, Glasner said: "My understanding is the deal with Marc is in the final stages."

He added Guehi would not be in the squad to face Sunderland in the Premier League on Saturday.

Earlier this month, Glasner said the Eagles would sell Guehi in January if their asking price was met.

Guehi captained Palace to their first major trophy in the FA Cup final against City in May, plus a Community Shield win over Liverpool at the start of this season.

He looked set to join Arne Slot's side on 1 September but the £35m deal fell through in the final hours of transfer deadline day, with Guehi having already started a medical.

Guehi became an England regular after joining Palace from Chelsea in 2021, and was a key player in the Three Lions' run to the Euro 2024 final.

Croatia international Gvardiol, 23, recently had surgery after breaking his shinbone in the 1-1 draw with Chelsea, while Portugal centre-back Dias, 28, is out for about four to six weeks with a hamstring injury.

City face derby rivals Manchester United at Old Trafford in the Premier League on Saturday.

Glasner highlighted Guehi's professionalism during the months of transfer speculation, but the 51-year-old also conceded once a player wants to move on, "a deal will happen".

He added: "Everyone wanted Marc to stay forever. I talked to him, of course, it stays between us.

"Marc showed it in the summer transfer window, showed it the whole autumn that he was 100% committed to the team and to Crystal Palace.

"I wish him all the best for the rest of his career. He is still at the beginning of his great career.

"He is a fantastic guy."