The 19-year-old forward has started all of City’s EFL Cup games this season, scoring both goals in the fourth-round win over Fulham.
Diaz’s contract expires at the end of this season and, although manager Pep Guardiola insists City have done “absolutely everything” to convince him to sign a long-term extension, he is understood to be on the verge of joining Madrid for an initial £15.5million.
In Diaz’s absence, Riyad Mahrez, Raheem Sterling and Gabriel Jesus comprise a strong forward line for City, with his fellow academy graduate Phil Foden in midfield alongside Kevin De Bruyne and Ilkay Gundogan.
Philippe Sandler, a 21-year-old close-season signing from PEC Zwolle, could make his City debut after being named among the substitutes.
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