Manchester City have agreed a £30 million ($38 million) deal with Chelsea to sign midfielder Mateo Kovacic, according to reports on Wednesday.

The treble winners are set to pay an initial £25 million for the 29-year-old Croatia international, with a further £5 million to follow in potential add-ons.

Kovacic, who joined Chelsea from Real Madrid in 2018, initially on loan, is entering the final year of his contract at Stamford Bridge.

The midfielder is set to become City's first signing of the summer transfer window and will give manager Pep Guardiola more midfield options at a time when captain Ilkay Gundogan's future is uncertain.

Gundogan's contract expires at the end of this month and the Germany international has not yet agreed new terms.

Kovacic, who won the Champions League three times with Real and once with Chelsea, is likely to be one of several departures from the London club as new manager Mauricio Pochettino trims his squad.

Chelsea earlier Wednesday bid farewell to France midfielder N'Golo Kante, who is joining Saudi club Al Ittihad.