Manchester City have suffered a major setback in their pursuit of Everton defender Jarrad Branthwaite.

The 21-year-old is expected to make a big-money move away from Goodison Park this summer, as Everton look to raise funds amid continued financial and ownership issues at the Merseyside club.

The sale of centre-back Jarrad Branthwaite could boost Everton's financial outlook, with the Englishman emerging as a transfer target for several Premier League clubs this summer, including Pep Guardiola's Manchester City.

Branthwaite, who was surprisingly axed by Gareth Southgate for England's 26-man squad for the European Championship in Germany, featured in 35 Premier League matches for Everton during the recent campaign.

The defender spent time at Blackburn Rovers and PSV prior to breaking into Sean Dyche's first-team at Goodison, with three goals and 41 appearances across all competitions for Branthwaite this term.

The Englishman signed a new contract with Everton in October until 2027, but is reportedly a target for Manchester United, Real Madrid, Tottenham and Manchester City after an impressive campaign on Merseyside.

Etihad bosses were claimed in March to be 'monitoring developments' of the 21-year-old, with Manchester City believing that the defender shows similar traits to John Stones, and being 'intent to keep competition high' within Guardiola's squad.

Manchester City could be set to miss out on signing the Everton defender however, after The Times revealed that Branthwaite had agreed personal terms with rivals Manchester United, offering wages of between PS150,000 and PS160,000 a week.

Manchester United still need to agree a transfer fee with Everton, who are set to command around PS70 million to sell the centre-back this summer.

Manchester City currently have an array of defensive options, with Ruben Dias, John Stones, Manuel Akanji, Nathan Ake and Josko Gvardiol all at Guardiola's disposal.

The Sky Blues paid PS77.6 million to add Gvardiol from RB Leipzig last summer, with the 22-year-old having won the Premier League title and scored five goals during his maiden season at the Etihad Stadium.