(CNN) -- Manchester City manager Robert Mancini has confirmed that the English Premier League side are in negotiations with two Brazilian clubs over a loan move for Robinho.
The 26-year-old playmaker joined City from Real Madrid for $52 million in September 2008 but has not settled in Manchester and is being linked with Santos and Sao Paulo.
Mancini confirmed that Brazil international is in his squad for City's English League Cup match against Manchester United, but that a deal could be done to help the player move back to his homeland.
"It is possible that something could happen," Mancini told reporters on the eve of the semifinal second leg clash at Old Trafford.
"This kind of thing does happen. I know in Italy there were instances when clubs paid a lot of money for a fantastic player but afterwards he needed to play at another club.
"Negotiations are happening but for now he is part of my squad. I have five or six strikers to choose from, which makes it difficult for him and me.
"The World Cup in June is a big problem for him. He wants to play for the national team. I understand that but I must decide what is best for the team."
City have also let Slovakian winger Vladimir Weiss join Bolton on loan for the rest of the season while Wanderers boss Owen Coyle has also brought former Houston Dynamo midfielder Stuart Holden to the club.
Elsewhere, West Ham are set to sign South Africa international Benni McCarthy after agreeing an undisclosed fee with Blackburn Rovers.
Manchester United have completed a deal to sign Fulham defender Chris Smalling, although the player will remain at Craven Cottage until the end of the season and join Alex Ferguson's side for the start of the 2010/11 campaign.
Aston Villa have sold midfielder Craig Gardner to city rivals Birmingham for $4.8million while Wigan are put the final details on a deal to bring in Villarreal forward Marco Ruben.
Everton unveiled the signing of Philippe Senderos on loan from Arsenal until the end of the season while Celtic have confirmed the signing of striker Morten Rasmussen from Brondby.