Manchester City offer £42m for Sane
The club's director confirmed that the youngster will leave.
Schalke's sporting director Christian Heidel confirmed that Leroy Sane will leave the club.
Sane was linked to several big teams like Real Madrid, Bayern Munich and Manchester City.
Ancelotti denied a few days ago that they are holding talks with the 20-year-old:
"The team is very good. All positions are well staffed and we do not need new players for this season.
"We have very good young players here. You have to give them the opportunity to show it and to gain experience".
Man City are keen to sign the youngster since 2013. Heidel told 'Sky Sports':
"Leroy has made it clear he would like to leave this summer. We will consent to a transfer if Schalke’s conditions are met".
City offered initially £35 million, but since the club wants at least £42million, they are expected to increase the sum.
The 20-year-old made 47 appearances for his club last season and scored 11 times.