Micah Richards is ready to sign a new contract with Manchester City after the club called his bluff over his £70,000-a-week wage demands by threatening to sell him.

The England defender has accepted in principle City's offer of £50,000 a week after it was made clear to him by the Blues that they would cash in on him in the summer.

Sunday Mirror Sport can reveal the 19-year-old will seal a four-and-a-half-year deal once the transfer window closes this week. A source close to the Richards camp said: "Sometimes you have to compromise in football and that's what has happened.

"Micah wants to stay and will sign. It would have already been done but the club have been too busy trying to bring players in to hold talks."

Richards hoped interest from Chelsea, Manchester United, Tottenham and Newcastle would weaken City's resolve. But only Newcastle have registered an interest this month - and he did not want to go there.

And he was warned he would be sold in the summer in an auction which would have opened at £20m.