The 22-year-old defensive midfielder had been linked with a move to the Premier League, with City keen to land him this summer, while Arsenal increased their interest in him following his impressive performances for Monaco as they dumped the Gunners out of the Champions League last season.
But Italian side Inter revealed on Sunday that Kondogbia has signed a five-year deal to join the Serie A club as long as he passes a medical, with his wages set to earn him around £2.8m-a-year.
With officials from both Inter and AC Milan in Monte Carlo to try and persuade Kondogbia to Italy, the blue half of Milan proved to be triumphant after convincing the former Seville player to join their ranks under the guidance of former City manager Roberto Mancini.
Kondogbia made 35 appearances for Monaco during a two-year spell with the Ligue 1 club, having arrived from La Liga in 2013, and he shone in their march to the Champions League quarter-finals last season when they eventually came unstuck against finalists Juventus.
However, Kondogbia’s move to Inter could yet have further ramifications for Arsenal, as reports in France suggest that Monaco will look to sign Sporting Lisbon’s Williams Carvalho as an immediate replacement. Carvalho stood out in Portugal Under-21s victory over their Englisg counterparts last week in their European Under-21 Championships opener, and the Gunners were linked with a £28.5m bid for the Sporting midfielder.
Carvalho has long been on Arsene Wenger’s radar, and he does have a £37m release clause in his contract, but Monaco’s interest could force Arsenal to speed up any plans to make an official move. Portuguese newspaper Record claims that Monaco will make an initial €20m bid for Carvalho, although that offer is likely to be rejected with Sporting unwilling to accept any bids below his release clause.
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