Manchester City are close to completing the signing of striker Gabriel Jesus from Palmeiras, according to reports.

The Manchester Evening News says the 19-year-old Brazilian, dubbed as the new Neymar, could move to the Etihad Stadium for a fee of around £27m ($35m).

City sources told the paper that reports of a £20m release clause written into Jesus's contract that applied only to Real Madrid, Barcelona, Manchester United, Paris Saint-Germain and Bayern Munich were false.

Jesus's agent Cristiano Simoes is reported to be negotiating the terms of a five-year contract with City, with the Etihad club in favour of letting the player stay with Palmeiras until the end of the Brazilian championship in December.

However, the Manchester Evening News says Jesus could face work permit issues in England as he is not yet a full Brazil international.

He has scored 10 goals in 14 Brazilian Serie A appearances for Palmeiras this season.

Barcelona were the first team reported to be attracted by the player's meteoric rise, but in recent weeks the likes of Real Madrid, Inter Milan, Juventus, Manchester United and Bayern Munich were understood to have joined the race for his signature.

Earlier this month, Ze Roberto, Jesus's teammate at Palmeiras, urged his compatriot to join Real Madrid.

Gabriel Jesus
Gabriel Jesus, 19, has been linked with a host of top clubs in EuropeGetty Images

"I think he is ready to make the move to Europe," Ze Roberto told AS. "Despite his tender age, moving to Europe would be key for him continuing his development.

"Of course he would need a period of adaptation but it is important for him to move to a club with top talents who can help him progress."

"A few months ago someone from Bayern Munich got in touch with me to talk about him. They wanted to know how he is off the pitch. I know there is interest from Bayern, Juventus, Barcelona and Real Madrid.

"It is difficult to make a decision because they are all giants, but I think Real Madrid would be the best option for him. To work with Zinedine Zidane and train alongside stars such as [Cristiano] Ronaldo, [Gareth] Bale and [Karim] Benzema. He would be able to learn from three of the best. That is why I think Madrid would be ideal for him."