Manchester City are set to put in a bid for Derby County midfielder Will Hughes in the January transfer window, reports the Daily Mirror. Derby value the 17-year-old at £10m but may cut a deal with City for £6m, if the champions agree to also trade players. Hughes has made 27 appearances for Derby in the Championship this season, scoring two goals and registering two assists in the process.

Will Hughes (L)

The champions are believed to be scouting the player as a long-term replacement for midfielders Gareth Barry, 31, and Yaya Toure, 29. Roberto Mancini has already brought Everton youngster Jack Rodwell, 21, with an eye on the future.

If news about an approach for Hughes is true, then it would suggest the Etihad club are beginning to invest in youth rather than spending large sums on older players, in an attempt to secure the club's sporting future.

Mancini has also been linked with a move for 24-year-old Brazilian midfielder Paulinho but a lack of encouragement from parent club Corinthians seems to have deterred the Italian from proceeding in that direction.

City beat Arsenal 2-0, at the Emirates, on Sunday, to move back within seven points of leaders Manchester United.

Kompany on Tackles

Meanwhile, City have confirmed they will appeal the red card to captain Vincent Kompany. The Belgian centre back was sent off late in the game against the Gunners, for a challenge on Jack Wilshere.

"Massive congrats to our team and fans, great game! Also... no grudges against the referee, I understand the difficulty of the job. About the tackle: If the ball is overrun by the opponent and a 50/50 challenge occurs, collision is inevitable. Ultimately I'm a defender: Appeal may work or not. I will never pull out of a challenge, as much as I will never intend to injury a player," the 26-year-old Kompany was quoted on the club's Web site.

"It's about the team and our team looks strong at the moment. We need to maintain this level of performance," he added.