Pep Guardiola has confirmed that Manchester City are interested in Real Madrid right-back Danilo as the club works on signing "three or four new players" ahead of the new season. Meanwhile, the Spanish boss has ruled out the departure of Sergio Aguero following reports linking the Argentinian international with a shock move to Chelsea.

City have already bolstered the right-back position with the addition of Kyle Walker from Tottenham Hotspur. However, Guardiola stills wants another full-back after both Bacary Sagna and Pablo Zabaleta left the Etihad Stadium at the end of last season.

Dani Alves appeared to be City's first choice but the Premier League giants have been forced to turn their attention to Danilo after the former Barcelona and Juventus defender agreed a free-agent move to Paris Saint Germain instead.

Reports on the weekend suggested that Chelsea were leading the race for the Real Madrid player, with Brazilian publication Globo Esporte claiming that he had agreed personal terms to join the Premier League champions.

However, earlier on Wednesday morning (19 July) Marca reported that City were finally set to win the race in a deal worth between €30m (£26.5m, $34.6m) and €35m.

Guardiola has claimed that the deal is not done yet but did admit interest in the Real Madrid star.

"We have many options for players who are coming but Danilo is not done so until it is done I cannot say absolutely anything out of respect for other clubs, but he is an option that we have," Guardiola said in a press conference ahead of the US tour derby against Manchester United.

"I said he's a player from Real Madrid, we are talking with not too much players, with three or four players to come and join us. Not just for next season but the next three, four, five years, because they are all young players."

Asked whether Monaco full-back Benjamin Mendy could be among those expected to sign, he said: "Same case as Danilo and other ones - we have targets and we see what happens. He's a Monaco player so I'm quiet in my comments."

Meanwhile, the Spaniard provided a further blow for Chelsea after assuring that Aguero is going nowhere this summer.

Sky Sports reported on the weekend that Chelsea had included the 29-year-old striker in a list of potential targets to bolster the attack alongside Real Madrid's Alvaro Morata, Borussia Dortmund's Pierre-Emerick Aubameyang and Torino's Andrea Belotti.

But Guardiola said: "You know my opinion on Sergio. I said many times last season and he's our player. He will remain here."

Yet, Chelsea fans are still expected to receive a transfer boost in the coming hours with reports in Spain claiming that Antonio Conte's side are set to complete the signing of Morata from Real Madrid.

Danilo and Neymar
Danilo joined Real Madrid from Porto in the summer of 2015. Getty