Diaz scored two goals against Fulham in the Carabao Cup in November
Manchester City youngster Brahim Diaz is close to joining Real Madrid for an initial £15.5m.
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There has been uncertainty over the 19-year-old's future since the start of the season.
City manager Pep Guardiola previously said the club were trying to persuade Diaz to sign a new contract.
However, the Blues have now accepted that Diaz, a Spain Under-21 international, will join Real Madrid for a fee that could rise to £21m.
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Diaz joined City from Malaga as a 14-year-old in 2013 and made 15 first-team appearances, four this season.
His most recent outing came in the Carabao Cup quarter-final win at Leicester on 18 December.
Source: bbc.com