Schalke have agreed a deal to sign on-loan Manchester City defender Matija Nastasic on a permanent basis.

The Serbia international joined the Bundesliga side in January and it is understood the loan was structured with a view to the 21-year-old remaining with the club full-time if he made a certain number of appearances.

Schalke announced on their website Nastasic has committed to a contract until June 2019.

"I am proud and happy that I remain a Schalke," the centre-back told schalke04.de.

"The team did very well taking me from day one, I was immediately a part of the team.

"In the future I would like to help us to achieve our goals as a team."