Chelsea looked close to securing a move of the Brazilian right-back, but barely a week after announcing the signing of Kyle Walker, Manchester City are closing in on a deal for Danilo, after Guardiola confirmed interest in the Real Madrid man.
The Citizens recently made Walker the most expensive defender ever, and have now reportedly reached an agreement with Real Madrid to bring in Danilo in a deal worth £26.5 million.
Spain international Dani Carvajal is Zidane's preferred right-back and the 26-year-old Brazilian has not managed to break into the starting lineup after two seasons at the Bernabeu.
His performances last season were highly criticised, but after letting Pablo Zabaleta and Bacary Sagna go, Pep Guardiola needs two new right-sided defenders.