Manchester City are set to miss out on Fernando Gago, according to one of the midfielder's agents.

The 23-year-old Argentina international has been linked with a move to Eastlands but his current club Real Madrid appear unwilling to let him go.

The Blues have reportedly already tabled a bid for the combative battler, but City are rumoured to have not met the asking price of £20million.

And with Real having failed to secure cover in midfield, one of the player's two agents, Marcelo Lombilla, is meeting with Real director general Jorge Valdano to try and resolve the situation.

"Lombilla is in Madrid and has met twice with Valdano but I do not believe that he will leave," Gago's other agent, Zoran Vekic, said.

"There is still a meeting pending, but I doubt that Madrid will let him join Manchester City because it is not a question of money."