Manchester City are set to lose highly-rated starlet Tosin Adarabioyo after talks over a new contract stalled.

Sportsmail understands Everton are preparing a formal offer for the England Under-19 international before this month’s transfer deadline.

The 19-year-old central defender has just six months to run on his existing contract but talks over an extension are well under way.

Tosin Adarabioyo is in talks with Manchester City over a new contract

Tosin Adarabioyo is in talks with Manchester City over a new contract but they have hit a hitch

Adarabioyo in action for City against Tottenham’s Nathan Oduwa in a Premier League 2 match

But discussions have now hit an impasse with no resolution in sight, though both parties are keeping an open mind regarding a possible new deal.

If no agreement is found, then Adarabioyo will be available on a free transfer at the end of the season – though City will be entitled to a compensation fee.

But Everton are planning to take advantage of the failed contract negotiations this month with an offer to take the defender before January 31.

Tottenham, Celtic and Leicester are also keen on the teenager – but Everton’s interest is understood to be much more advanced.

City have high hopes for Adarabioyo, who has made three senior appearances under Pep Guardiola so far this season.

He also made one start under Manuel Pellegrini last season, producing a promising display in the FA Cup defeat against Chelsea.

Indeed, Sportsmail’s Martin Samuel highlighted last month how Adarabioyo’s emergence at the Etihad Stadium is one of the reasons behind City’s reluctance to sign a new defender this month.

It remains to be seen whether Guardiola will turn to Adarabioyo before the end of the season in a bid to plug his leaky defence.

But unless a compromise can be found over new terms then Adarabioyo will leave the club he joined as a five-year-old at the end of the season.

Source: Daily Mail