The 21-year-old will join the Bundesliga side on loan until the summer, with the option of making the move permanent at the end of the season
Schalke have confirmed that Matija Nastasic has passed his medical and is now officially having previously agreed a deal with Manchester City.
On Sunday Goal revealed that the Bundesliga side had reached an agreement with the Premier League champions to take the centre-back on loan for the rest of the season with a view to a €12.8 million transfer next summer.
Nastasic joined City from Fiorentina in the summer of 2012 but after a promising debut campaign under Roberto Mancini, the Serb has failed to win the trust of Manuel Pellegrini, making just one club appearance this season.
Schalke have agreed to pay Nastasic’s €96,000-a-week wages in full for the duration of the loan, clearing one significant obstacle to City completing the €36m signing of Swansea City striker Wilfried Bony – the Premier League champions are unable to increase their wage bill as a result of Financial Fair Play penalties.
Nastasic’s departure leaves Manuel Pellegrini with club captain Vincent Kompany, €41m summer signing Eliaquim Mangala, Martin Demichelis and Dedryck Boyata as senior options in the centre of defence.