Manchester City beat Liverpool in signing 14-year-old Jadon Sancho from Watford

Manchester City have completed the signing of teenage forward Jadon Sancho from Watford in a reported £500,000 deal.

According to the Daily Mail, the England U15 international will link up with City's academy after the two clubs agreed terms on Friday.

The 14-year-old striker seems to have impressed more than just the Premier League champions as it is believed that sportswear giant Nike have already signed on the young forward as they believe he has the necessary skills to make it at the highest level.

Apart from the Etihad Stadium outfit, rivals Liverpool were also said to have shown interest in signing the forward.

But City have stole the show in the race and agreed a deal, which will see them pay an initial fee of around £66,000 with the fee increasing depending on his progress and appearances for the club. Watford are believed to have also secured a 10-percent sell-on fee for the youngster.

The young forward confirmed the deal on social networking site Twitter as he thanked former club Watford for everything ahead of his move to the Etihad Stadium.

"Thank You For Everything @watfordfcsays! Hello @MCFC Very Happy to be Joining Such a Great Club," Sancho tweeted along with a picture of him signing the contract.

Meanwhile, City boss Manuel Pellegrini is looking forward to some of the youngsters in the club progressing into the first-team, but admits that it is a hard task as his squad has a lot of strong players and experienced players are regularly bought during the transfer windows.

However, he feels with City's new state-of-the-art training centre allowing the youngsters to train alongside the first-team will benefit them and help them make the step up to the senior squad.

"I think it is very important for our group to help the development of the younger players," Pellegrini said, as quoted on City's official site.

"It is very difficult for them to progress to the first team because we have a very strong, competitive squad and each season we are buying new, important players."

"The fact we are now all training together at the CFA makes a huge difference because the youngsters can be around professional players every day will be very useful for them and the way we are working means that I'm sure we'll have a number of youngsters progressing through to the first team," the Chilean manager explained.