Federico Macheda's proposed move to Stuttgart is at an 'advanced point', according to his agent, and the Manchester United striker could join the German club permanently at the end of the season.
The 21-year-old is also a target for Siena and Bologna, while there is interest from clubs in Spain, but Stuttgart appear to be leading the race to capture the loan signing of the Italian.
Giovanni Bia, Macheda's representative, says talks with Stuttgart are progressing well, with Sir Alex Ferguson preferring the striker moves to the Bundesliga rather than to any of the other interested club.
Macheda, explains Bia, will initially leave Manchester United on a temporary basis, but could depart Old Trafford for good if he makes an impression during his loan spell.
"We are at an advanced point with Stuttgart," agent Bia told TMW on Thursday.
"Negotiations are going well. He is a player who is liked by a lot of clubs. Two Spanish ones, for example, are looking to intervene.
"There are Italian sides too, from Siena to Bologna and others, but I think that Sir Alex Ferguson wants to send him to a foreign side outside of the peninsula.
"He'll join a club on loan with the option to be signed outright as his contract expires in June 2014."
Macheda has failed to live up to expectation since bursting onto the scene as a teenager - scoring the winning goal against Aston Villa on his Manchester United debut - and is well down the pecking order at Old Trafford.
The forward has twice been sent out on loan since, but endured a poor spell with Sampdoria - not scoring in 14 appearances - and had a stint with Queens Park Rangers cut short due to injury.