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Published 10:11 28 Sept 2020 BST
Updated 10:15 28 Sept 2020 BST
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Pep Guardiola is widely reported to have wanted City to sign Napoli's Kalidou Koulibaly this summer, but a deal for the 29-year-old has never appeared close despite persistent speculation. The Serie A side are said to have asked for£80m for the Senegal international, a fee which, given his age, City were reluctant to pay. Dias represents a cheaper, longer-term option.
His departure to The Etihad was confirmed by Benfica on Sunday night. The club also announced that a separate transfer had been agreed which would see City's Nicolas Otamendi move in the opposite direction.
The Argentina international has spent five seasons with City having joined them from Valencia. He has played in Portugal before, spending four years with Benfica's fierce rivals Porto earlier in his career.
Although the fees for Dias and Otamendi have both been agreed, the transfers are subject to the players agreeing personal terms. This, however, is not expected to be a problem.
The announcement came a matter of hours after City were humiliated by Leicester in their first home game of the new league season. A disastrous day saw them concede three penalties to Brendan Rodgers' men in a 5-2 defeat.
Meanwhile, Leeds United are reportedly inching closer to completing a shock move for Bayern Munich's Michael Cuisance.
Fabrizio Romano, a journalist with his finger firmly on the transfer pulse, tweeted on Sunday evening that, as per L'Équipé, the newly promoted Premier League side are in advanced talks to sign the midfielder.
A fee of around £18m has been offered to Bayern with Cuisance said to have already agreed terms on a five-year contract at Elland Road.
The news that the European champions are open to selling the 21-year-old comes as a surprise, with Bayern already set to lose Javi Martinez after his Super Cup-winning header in Budapest last week. A further departure would leave their squad surprisingly thin ahead of what is set to be a busy season.
Marseille have also been credited with interest in Cuisance, though having only offered a loan deal it's believed Leeds are in the driving seat to sign the midfielder.
Cuisance joined Bayern a year ago from Borussia Mönchengladbach. However, competing with Thomas Muller in a more advanced role and Leon Goretzka and Joshua Kimmich for a deeper-lying position, his opportunities have been limited - perhaps explaining his willingness to seek a new challenge. Bayern suffered a 4-1 defeat at Hoffenheim on Sunday afternoon, with Cuisance absent from Hansi Flick's squad. Should he make the move to England, Bayern may choose to accelerate their reported interest in bringing Mario Gotze back to the Allianz Arena following his release by Borussia Dortmund in the summer. Leeds have started their return to life in the top flight brightly. After narrow defeat in their opener against champions Liverpool, they recorded their first win against fellow Premier League newcomers Fulham last week. On Sunday, they overcame Sheffield United in the Yorkshire derby at Bramall Lane thanks to Patrick Bamford's goal.
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