Manchester City's 'verbal agreement' opens the door for Chelsea and Cole Palmer

It is understood City have agreed to pay Wolves £47million without add ons, but the deal has not yet been finalised. In a separate deal, City’s 21-year-old midfielder Tommy Doyle will join Wolves on loan with a £5million option to buy, and City retaining a significant sell-on clause if the move becomes permanent.

City last week saw a bid for Nunes rejected, with the 25-year-old subsequently choosing not to train with Wolves in a bid to force through a move in the final days of the transfer window. Nunes became Wolves’ record signing when he joined from Sporting Lisbon for an initial £38million last summer, signing a five-year contract with the option of a further 12 months. He made 34 appearances last term, scoring one goal and proving one assist.

The Nunes deal could have a bearing on Palmer’s immediate future at the Etihad. It is believed Chelsea have so far bid £35m for the young England ace as Mauricio Pochettino looks to bolster his attack – an offer that was rejected by City.

Chelsea’s interest in Palmer late in the window is a blow for Brighton’s hopes of landing the playmaker. The Seagulls have been keen on Palmer for some time and head coach Roberto De Zerbi was keen to bolster his attack – especially after the injury to Julio Enciso, sustained last week. The Paraguay man is expected to miss four months, which rules him out of Albion’s Europa League qualification matches.