Yan Couto is set to complete his move from Manchester City to Borussia Dortmund this week, a source has told ESPN.

The defender is expected to travel to Germany on Thursday before joining the Bundesliga side in an initial loan deal. There is also an obligation to make the move permanent built into the agreement for a fee of 30 million ($32.4m).

Couto signed from City in 2020 but has not made a competitive appearance for the club. The 22-year-old impressed on loan at Girona last season, playing 34 times in LaLiga as the Spanish side earned qualification for the Champions League.

He's been capped four times by Brazil after making his international debut in 2023.

Meanwhile, City are set to unveil new signing Sávio at the Etihad Stadium on Sunday. The 20-year-old winger, a teammate of Couto's at Girona last season, is the only addition to Pep Guardiola's squad so far this summer.

The club remain open to offers for midfielder Kalvin Phillips, who spent the second of last season on loan at West Ham.

Phillips has played a central role in City's preseason tour of the United States, filling in at centre-back in the 2-2 draw with Barcelona in Orlando on Tuesday.

Meanwhile, Barcelona are closing in on an agreement to re-sign full-back João Cancelo. The 30-year-old is surplus to requirements at City and has had loan spells at Barcelona and Bayern Munich.