Manchester City have agreed a fee of £45 million ($55 million) fee with Leeds United for the services of England midfielder Kalvin Phillips. The Premier League champions will pay £42m for the 26-year-old with potential bonuses of £3m. The transfer is subject to Phillips agreeing personal terms with Pep Guardiola's side, though that is not expected to be an issue. Guardiola has picked Phillips to bolster his midfield after the departure of <a href="https://www.thenationalnews.com/sport/football/2022/04/12/manchester-city-caught-by-surprise-as-fernandinho-announces-decision-to-quit/" target="_blank">long-serving Brazilian stalwart Fernandinho at the end of last season</a>. Phillips came through the youth ranks at Leeds and played a key part in their promotion back to the Premier League two years ago. He went on to establish himself as an England international, featuring in their run to the European Championship final last year. Phillips would become City's third major addition since the end of last season after the arrival of Borussia Dortmund's Norway striker <a href="https://www.thenationalnews.com/sport/football/2022/06/13/erling-haaland-is-in-the-right-place-after-completing-manchester-city-move/" target="_blank">Erling Haaland</a> and Argentina forward Julian Alvarez, who has been loaned back to River Plate. Meanwhile, City academy midfielder Darko Gyabi will move to Leeds for around £5 million. The deal for Gyabi, an 18-year-old England Under 18 international who joined City from Millwall four years ago, has been negotiated independently of the Phillips move. Another player set to leave the Etihad is Brazil striker Gabriel Jesus after City reached an agreement in principle for the striker's move to Arsenal. There is still work to do to finalise the deal, including medical and personal terms but the fee is understood to be £45m for the Brazil international. The Gunners are without a senior striker after Alexandre Lacazette's contract rejoined Lyon following the expiration of his contract and Pierre-Emerick Aubameyang's exit to Barcelona earlier this year. Jesus, 25, is understood to be keen to link up with Arsenal boss Mikel Arteta, whom he worked under during the Spaniard's time as Guardiola's assistant from 2016 to 2019. During his five years at City, Jesus has scored 95 goals in 235 appearances and collected four Premier league winners' medals, one FA Cup and three League Cup titles.