Manchester City hold discussions with Valencia over Nicolas Otamendi

• Valencia have made the Argentina central defender available
• City’s Eliaquim Mangala could go to Valencia on loan

Nicolas Otamendi would be open to a move to Manchester City from Valencia.

Manchester City have held formal talks with Valencia about signing the Argentina central defender Nicolás Otamendi in a deal that could see Eliaquim Mangala go the other way on loan despite starting the first two games of the new Premier League season.

Valencia have made Otamendi available because the Spanish club still owe most of the €30m (£21.3m) fee they were supposed to pay City for Alvaro Negredo. Valencia, in turn, want a loan agreement with Mangala. City would not entertain the idea of selling the player they signed from Porto last year but the idea of loaning him has not been discounted.

That constitutes a surprise given that Mangala has taken over from Martin Demichelis this season as Vincent Kompany’s partner in central defence. Mangala had an erratic first season in English football but has helped City keep two clean sheets and, until now, there had been no indication that the club would contemplate letting him go, albeit only temporarily.

Negredo moved to Valencia on a permanent basis on 1 July after spending last season on loan at the club. Most of the monies owed to City are yet to be paid and Otamendi would be open to the move.

Manuel Pellegrini would consider signing the 27-year-old but following City’s 3-0 win over Chelsea at the Etihad Stadium on Sunday the manager would not be drawn. "No, I cannot confirm nothing. I do not talk about it," he said.

The victory over Chelsea brought a second clean sheet following last week’s 3-0 win at West Bromwich Albion. Kompany’s goal against Chelsea was also his second of the new term, the second-half header following a similar finish at The Hawthorns.

Otamendi has 25 international caps and was in the Argentina XI that lost the Copa America final to Chile on penalties.