Securing Akanji’s signature becomes City’s fifth senior arrival of the summer after agreeing to a five-year contract with him.
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Sky Sports reports that City agreed a deal worth just over £15 million with Dortmund on Wednesday to beat the transfer deadline.
The Swiss international had entered the final year of his contract and was yet to make an appearance for Dortmund this season but has played 158 times for the Bundesliga club since joining from Basel in 2018.
The Premier League title holders have struggled with defensive injuries this season, with Aymeric Laporte absent until September as he recovers from knee surgery, while Nathan Ake was taken off during their 3-3 draw at Newcastle on August 21.
City has already signed Erling Haaland, Stefan Ortega, Kalvin Phillips and Sergio Gomez this summer for a combined total of more than £100 million.
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Akanji moved to Dortmund from Basel in 2018 and rapidly established himself as a first-team regular. He made 36 appearances in all competitions last term.
Akanji, who picked the number 25 shirt vacated by former City skipper Fernandinho said, “I am delighted to be here, and can’t wait to get started.”
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