Man City open contract negotiations with Matt Smith but risk Sancho repeat

Manchester City have opened contract negotiations with academy product Matt Smith but could lose the Wales international to the Bundesliga.

The 19-year-old, who is on a season-long loan at Dutch side FC Twente, is the subject of interest from top German clubs, Premier League and higher-end Championship teams.

Smith is into the last 18 months of his contract at the Etihad stadium and while City are understood to be desperate to retain his services, sources close to the deal have told the MEN that the offer of a new contract has still to be made.

The Blues lost Jadon Sancho to Borussia Dortmund in the summer of 2017 as the winger sought regular first-team exposure, and it is understood that Smith would not be averse to a Bundesliga move himself.

City recently sold Brahim Díaz to Real Madrid after the winger grew frustrated by a lack of opportunities, and it is thought Smith is realistic about his chances of getting into Pep Guardiola’s first-team in the near future.

And Smith, who was described by Twente's sporting director Ted van Leeuwen as a 'gift', said he was enjoying his loan spell.

"It's different in England in the Premier League, especially with the resources a lot of teams have," he told the BBC in November.

"In some countries they want to buy young players to play them. It is nice to stay in England and play first-team football, but it's getting a lot harder now just because the levels of the leagues are getting higher.

"When I first thought about the move I did have my doubts about it.

"But then I look at the players who have done well abroad, Mason Mount (of Derby County) went to Vitesse Arnhem and did well, so I just kind of went with it.

"Now I am in the Wales squad, playing first-team football. I feel if I wasn't it would be a lot more difficult for me to get in the squads."