Manchester City have reportedly informed one of their most expensive signings that he is free to start looking for a new club this summer.

Grealish, 30, who cost ￡100m when he arrived at the Etihad, spent the season on loan at Evertonand rebuilt his reputation before a stress fracture cut his campaign short.

Despite that setback, his performances on Merseyside appear to have reshaped the conversation around his future.

According to Football Insider, Premier League and European clubs are monitoring the situation, but Everton are currently best placed to secure his signature if he leaves City again.

Speaking on the Transfer Insider podcast, Pete O’Rourke said: “I’m sure there’s other Premier League clubs who will be monitoring his situation at City as well.

“As I said, he’s got back to his best form during that loan spell at Everton as well, so there’ll be other clubs who will be keeping tabs on his long-term situation as well.

“Not just in the Premier League, but in Europe because he has impressed with Everton.

“I think you probably have to say that Everton are in pole position to sign Grealish if he does end up leaving Man City.

“The positive news for Everton here is that Grealish is very much open for a return to Everton.

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“He’s really enjoyed his time at the club, which has obviously been cut short by this injury, which was a big blow to him and a big blow for Everton as well.

“He has performed well for Everton, six assists and two goals in 20 Premier League appearances, he’s really enjoying working under David Moyes.”

Grealish’s contract at City enters its final year this summer, but wages reported to be close to ￡500,000 per week make a permanent deal difficult.

A renewed loan is considered more realistic, particularly if City are willing to continue subsidising his salary.

TEAMtalkrecently reported that City have given Grealish the green light to assess his options, with another temporary move seen as the most workable solution if no buyer matches the financial package required.

Jack Grealish has confirmed his season is over after undergoing surgery on a stress fracture in his foot, ruling him out for the remainder of Everton’s campaign.

Posting from his hospital bed, he wrote: “Didn’t want the season to end like this but that’s football, gutted. Surgery done and now all focus on getting back fit. I know for sure I will come back fitter, stronger and better than before. The support I’ve had since coming to this unbelievable club has meant the world to me. The staff, my team-mates and especially the fans have been incredible and I absolutely love representing this club.”

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