Southampton have denied reports that Manchester City are set to sign highly-rated youngster Matthew Mills.

Mills, 19, has been with the club since 2002 after joining from Swindon Town but has made just six first-team appearances for the Saints.

He has enjoyed loan spells with both Coventry and Bournemouth, with weekend reports suggesting City boss Stuart Pearce is ready to move in on the England under-19 international.

Mills is believed to have turned down a new deal at St Mary's with City expected to pay around £250,000 for his services but a Southampton spokesman told PA Sport: "We are not aware of any offer for Matthew as of yet."