Man City's Sane to have surgery on cruciate ligament injury
Leroy Sane, 23, was taken off clutching his knee during City's Community Shield win over Liverpool last Sunday.
"Manchester City FC can confirm that Leroy Sane has damaged the anterior cruciate ligament in his right knee," City said in a statement.
"He has undergone testing throughout the week, with a specialist doctor travelling to Manchester for further examinations to understand the extent of the injury. Leroy will have surgery in the coming week."
Reports in the German media claim that Sane will be ruled out for several months, which could end interest in the German international from Bayern Munich.
Bayern had identified Sane as the primary target in their search for a long-term replacement for departing club icons Arjen Robben and Franck Ribery.
Having been slow to move in the transfer window this year, the German giants are under pressure to make a high-profile signing. Earlier this week, star striker Robert Lewandowski publicly called on the club to sign three new players.
The Sane transfer had looked close to completion, with Kicker reporting last week that terms had been agreed on a 100-million-euro ($112m) deal.
"The transfer will now have to be reassessed," the magazine wrote on Thursday.